[SOLUTION] Real Business Cycle Theory
QUESTION: Discuss how Real Business Cycle Theory conceptualizes the behavior of output over time. How does this differ from previous accounts of the relationship between the business cycle and growth? – My idea 1) Give a detailed examination of of Real business cycle theory and how what core aspects of the theory relate to output over time. Explain the topic by including knowledge of the various perspectives put forward by other scholars in relation to it. You must demonstrate reasoning skills with the use of evidence, use real-world examples are encouraged. 2) Then explain in detail how the explanation of RBST differs classical economic models. I.e How this Differs from Monetarism, New Keynesian Macroeconomic consensus, New Keynesian Growth Theory Lucas Revolution E.G Differences RBGT — supply side theory Kensian – Demand side theory – My Rough Starting Plan will be attached including many sources and notes. Time is short on this I would appreciate someone with a background in economics We want to show that RBC models demonstrate that cycles can occur through of optimizing agents to real disturbances, such as random changes to technology or productivity. Follow how the output is affected through economic shocks can occur and how this affects actors’ decisions (firm and consumer) from the supply-side perspective. More in attachment Starting plan attachment
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