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What are the key ideas of the real business cycle model? How does it explain business cycle fluctuations?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 9E

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What are the key ideas of the real business cycle model? How does it explain
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