What is real business cycle theory?

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Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

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Question Posted: Jan 23, 2023 02:32 AM

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Real business cycle theory is not a theory about cycles. Explain.
Use real business cycle theory to explain the effects of an adverse supply shock and to explain why it is easy to confuse a demand-induced decline in Real GDP with a supply-induced decline.
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What is real business cycle theory?

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In short real business cycle theory points to positive and negat...View the full answer

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