Business Studies, asked by ganitha5883, 1 year ago

Basic structure of a prototype real business cycle

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Answered by taibak32

Answer

Real business cycles are recurrent fluctuations in an economy's incomes, products, and factor inputs - especially labor - that are due to nonmonetary sources. ... Most real business cycle (RBC) models are variants or extensions of a neoclassical growth model. One such prototype is introduced.

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