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Homework answers / question archive / Which of the following is not an endogenous variable commonly found in DSGE models? a
Which of the following is not an endogenous variable commonly found in DSGE models?
a. TFP
b. consumption
c. hours worked
d. real wages
The correct answer is C.
DSGE models are models used in macroeconomics that explain the effects of economic policies in accordance with the applied overall equilibrium. The hours worked are not dependent on any specified variable. The income received is dependent on the hours worked; hence hours worked are not dependent on any variable. Consumption is dependent on the income received or the wages received within a specific period.