Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 10, Problem 2RQ
To determine
To describe:Two main components of theory of business cycle and its description for real business cycle theory.
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What are the key ideas of the real business cycle model? How does it explainbusiness cycle fluctuations?
Explain in details with the help of graphs.
What is meant by business cycle? What are the leading and lagging indicators of forecasting a business cycle? Explain with examples.
What is the central idea of the real business cycle
theory? A. Fluctuations in economic activity are
caused by changes in government policy B.
Fluctuations in economic activity are caused by
changes in technology and productivity C.
Fluctuations in economic activity are caused by
changes in consumer spending D. Fluctuations in
economic activity are caused by changes in
monetary policy
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