Real business cycle theory explains cyclical fluctuations in terms of fluctuations in

Name: Real business cycle theory explains cyclical fluctuations in terms of fluctuations in
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Real business cycle theory attributes cyclical fluctuations primarily to changes in aggregate supply, rather than changes in aggregate demand or inflation expectations. This perspective emphasizes how real shocks to the economy, such as changes in technology or resource availability, can lead to cycles in economic activity.

Real Business Cycle Theory Explains Cyclical Fluctuations in Terms of Fluctuations