Dynamic Stochastic General Equilibrium (DSGE) models are models that allows analysis of
A) productivity shocks only.
B) productivity as well other shocks that have impacts on the economy.
C) fiscal policy shocks only.
D) monetary policy shocks only.

Question

Quizplus · Accepted Answer

DSGE models allow analysis of not only productivity shocks, but also other shocks that have impacts on the economy, such as fiscal and monetary policy shocks.

Dynamic Stochastic General Equilibrium (DSGE) Models Are Models That Allows