Prescott's calibrated RBC model showed that the actual and simulated ________ of five key macroeconomic variables were very close.
A)magnitudes
B)slopes
C)volatilities
D)betas

Question

Quizplus · Accepted Answer

Prescott's calibrated Real Business Cycle (RBC) model demonstrated that the actual and simulated volatilities of five key macroeconomic variables closely matched, showcasing the model's ability to replicate the fluctuations observed in real-world economic data.

Prescott's Calibrated RBC Model Showed That the Actual and Simulated