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Answer to Question #327712 in Macroeconomics for Radha

Question #327712

Discuss the Real Business Cycle model. Does the global economic crisis of 2007-09

support this model?


1
Expert's answer
2022-04-12T11:30:42-0400

Real business cycle models state that macroeconomic fluctuations in the economy can be largely explained by technological shocks and changes in productivity. These changes in technological growth affect the decisions of firms on investment and workers (labour supply).



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