The real business cycle theory is most closely related to

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The real business cycle theory is based on the classical model, which emphasizes the role of supply-side factors, such as technology and productivity, in influencing economic growth and fluctuations. It argues that changes in technology and productivity can lead to real shocks that cause fluctuations in output, employment, and prices, without the need for government intervention or monetary policy.

The Real Business Cycle Theory Is Most Closely Related to