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The Dynamic Stochastic General Equilibrium (DSGE) Models Assume

Question 42

Multiple Choice

The dynamic stochastic general equilibrium (DSGE) models assume


A) perfectly competitive markets
B) that prices respond quickly to changes in economic conditions
C) that economic agents' current decisions are influenced only by current policy changes
D) a limited ability of firms to adjust prices
E) that markets tend to clear very slowly

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