According to real business cycle (RBC) theory, the main source of the business cycle is

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RBC theory holds that changes in productivity, or the efficiency with which goods and services are produced, are the primary driver of business cycles. When productivity increases, businesses can produce more output with the same amount of inputs, leading to economic growth and expansion. Conversely, when productivity decreases, businesses are less able to produce goods and services efficiently, leading to a contraction in the economy.

According to Real Business Cycle (RBC) Theory, the Main Source