Are these not the 'friction can be ignored' assumptions of economics? They are, of course, blatantly false. But that doesn't stop such models from effectively m

Are these not the 'friction can be ignored' assumptions of economics? They are, of course, blatantly false. But that doesn't stop such models from effectively modelling real-world behavior. Granted, I know a slight bit about general equilibrium theory, but nothing about DSGE.