According to the real business cycle theory,business cycle contractions are generally caused by

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Real business cycle theory argues that economic contractions are caused by decreases in the economy's capacity to produce goods and services, rather than external shocks such as changes in the money supply or political self-interest. This decrease in production capacity can be caused by factors such as technological regress or labor market frictions.

According to the Real Business Cycle Theory,business Cycle Contractions Are