Models that are similar to RBC models but allow for shocks other than productivity shocks are known as
A)DSGE models.
B)Keynesian models.
C)Solow models.
D)Friedman models.

Question

Quizplus · Accepted Answer

RBC models are based solely on productivity shocks, while DSGE (Dynamic Stochastic General Equilibrium) models allow for a variety of shocks, including technology shocks, monetary shocks, and fiscal policy shocks. The other options (Keynesian, Solow, and Friedman models) do not fit the description of models allowing for non-productivity shocks.

Models That Are Similar to RBC Models but Allow for Shocks