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DSGE models often feature ________, which allow(s) the effects of shocks to lag behind the shocks themselves, and _________, which allow monetary policy to have

DSGE models often feature ________, which allow(s) the effects of shocks to lag behind the shocks themselves, and _________, which allow monetary policy to have real effects on the economy.

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heterogeneity; nominal rigidities

nominal rigidities; adjustment costs

adjustment costs; nominal rigidities

heterogeneity; incomplete markets

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