Prescott's calibrated RBC model was able to match the data in terms of the ________ between many key macroeconomic variables and GNP; that is,in terms of how closely they moved with GNP over the business cycle.
A)correlation
B)interdependence
C)gamma coefficient
D)sigma ratio

Question

Quizplus · Accepted Answer

The sentence is referring to the relationship or correlation between key macroeconomic variables and GNP, and indicates that Prescott's calibrated RBC model was able to match this relationship or correlation closely with the actual data. The other options (B) interdependence, (C) gamma coefficient, and (D) sigma ratio do not fit the context of the sentence or the topic of macroeconomic variables and GNP.

Prescott's Calibrated RBC Model Was Able to Match the Data