The endogenous variables of the mother of all models in the Appendix to Chapter 14 include the level of output, the natural rate of output, the price level, and:
A) the real and nominal interest rates.
B) the money supply.
C) the world price level.
D) government purchases.

Question

Quizplus · Accepted Answer

The mother of all models includes both real and nominal interest rates as endogenous variables. The other options listed (B, C, and D) are exogenous variables in the model.

The Endogenous Variables of the Mother of All Models in the Appendix