In the real business cycle:

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In the real business cycle theory, employment, labour productivity, and real wages are procyclical, meaning they tend to move in the same direction as the business cycle. This is because during expansionary periods, businesses increase production and hire more workers, leading to an increase in productivity and real wages. During recessions, businesses cut back on production and lay off workers, leading to a decrease in productivity and real wages.

In the Real Business Cycle