The early DSGE models assumed that TFP fluctuates over time rather than growing at a constant rate.

Name: The early DSGE models assumed that TFP fluctuates over time rather than growing at a constant rate.
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Early DSGE models assumed that total factor productivity (TFP) fluctuates over time, rather than growing at a constant rate. This was in contrast to earlier growth models that assumed TFP growth was constant. Later versions of DSGE models have incorporated variations of both assumptions.

The Early DSGE Models Assumed That TFP Fluctuates Over Time