Real Business Cycle Theory

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Recommended Reading:

  • Readings: Kevin D. Hoover, “New Classical Macroeconomics.” George W. Stadler, “Real Business Cycles.” [NOTE: This article at times is technical, but most students who are interested in the history and specifics of RBC theory should still get a lot out of it.]
  • Topics: The RBC explanation of recessions as equilibrium responses to shocks.