Using the real business cycle theory, explain the effects of an adverse technological shock on the labor market and on the output market. Illustrate graphically how the adverse technology shock affects labor demand and supply. Why is this theory controversial?

Question

Quizplus · Accepted Answer

The Answer of Using the real business cycle theory, explain the effects of an adverse technological shock on the labor market and on the output market. Illustrate graphically how the adverse technology shock affects labor demand and supply. Why is this theory controversial?

Using the Real Business Cycle Theory, Explain the Effects of an Adverse