What causes output to fluctuate in real business cycle model


Problem

1. What were the two main principles introduced in the rational expectations revolution?

2. Why is it useful to study different models of the business cycle?

3. What causes output to fluctuate in the real business cycle model?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What causes output to fluctuate in real business cycle model
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