Payame Noor University Economic Growth and Development Research 2228-5954 15 58 2025 03 21 Measuring the Effect of Uncertainty of Economic Policies in Business Cycles on Macroeconomic Variables With DSGE Model Approach Measuring the Effect of Uncertainty of Economic Policies in Business Cycles on Macroeconomic Variables With DSGE Model Approach 27 15 11410 10.30473/egdr.2024.71351.6852 FA Yazdan Gudarzi Farahani Assistant Professor, Department of Islamic Economics, Faculty of Economics and Administrative Sciences, University of Qom, Iran. Mohsen Mehrara Professor, Faculty of Economics, University of Tehran, Tehran, Iran Zoleikha Morsali Arzanagh Department of Accounting and Management, Islamic Azad University, Karaj Branch, Karaj, Iran. Ebrahim Abbasi Department of Management, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran. Journal Article 2024 05 16 The purpose of this paper was to investigated the effects of uncertainty of economic policies in business cycles on macroeconomic variables. In this study, a dynamic stochastic general equilibrium approach and statistical data for the period 1989-2022 have been used. In this study, based on the analysis of the period of boom and recession, the shock from the uncertainty component of economic policy in this period was investigated on macroeconomic variables. The results show that during the boom period, the effects of economic policy uncertainty shock on variables such as production, investment, and consumption were less than during the recession period, and during the recession period, the negative effect of this shock on the mentioned variables was more severe. In addition to this, the effect of economic policy uncertainty shock on the variables of inflation rate, interest rate and exchange rate has also been positive during economic boom and recession and has led to an increase in these nominal variables. The purpose of this paper was to investigated the effects of uncertainty of economic policies in business cycles on macroeconomic variables. In this study, a dynamic stochastic general equilibrium approach and statistical data for the period 1989-2022 have been used. In this study, based on the analysis of the period of boom and recession, the shock from the uncertainty component of economic policy in this period was investigated on macroeconomic variables. The results show that during the boom period, the effects of economic policy uncertainty shock on variables such as production, investment, and consumption were less than during the recession period, and during the recession period, the negative effect of this shock on the mentioned variables was more severe. In addition to this, the effect of economic policy uncertainty shock on the variables of inflation rate, interest rate and exchange rate has also been positive during economic boom and recession and has led to an increase in these nominal variables. https://egdr.journals.pnu.ac.ir/article_11410_910690920113fcfd3abbf52660c0560d.pdf