Which of the following is not an endogenous variable commonly found in DSGE models? a

Economics Dec 14, 2020

Which of the following is not an endogenous variable commonly found in DSGE models?

a. TFP

b. consumption

c. hours worked

d. real wages

Expert Solution

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.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote