Critics of real business cycle theory have problems with the claim that the economy experiences

Name: Critics of real business cycle theory have problems with the claim that the economy experiences
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Real business cycle theory attributes fluctuations in the economy to large negative shocks to productivity rather than to changes in aggregate demand, consumption spending, or fiscal policy. Critics argue that this perspective overlooks other significant factors that can influence economic cycles.

Critics of Real Business Cycle Theory Have Problems with the Claim