Answer to Question #161929 in Macroeconomics for Lewisa

Question

Using appropriate economic variables give two examples each of simple theoretical model and dynamic stochastic general equilibrium models

Answer 1

Population

Simple theoretical model

In estimating population, there are 2 simple theoretical models that can be used in the process. The models include detailed simulation model and complex simulation model.

Inflation

Dynamic stochastic general equilibrium models

In studying inflation, linearized model and nonlinear model can be applied.