What is Real Business Cycle Theory

Real business-cycle theory is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real shocks. Unlike other leading theories of the business cycle, RBC theory sees business cycle fluctuations as the efficient response to exogenous changes in the real economic environment. That is, the level of national output necessarily maximizes expected utility, and governments should therefore concentrate on long-run structural policy changes and not intervene through discretionary fiscal or monetary policy designed to actively smooth out economic short-term fluctuations.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Real business-cycle theory

Chapter 2: Keynesian economics

Chapter 3: Macroeconomics

Chapter 4: Recession

Chapter 5: New Keynesian economics

Chapter 6: Real versus nominal value (economics)

Chapter 7: Business cycle

Chapter 8: Aggregate demand

Chapter 9: Procyclical and countercyclical variables

Chapter 10: Robert Hall (economist)

Chapter 11: Economic stability

Chapter 12: Dynamic stochastic general equilibrium

Chapter 13: Neoclassical synthesis

Chapter 14: New classical macroeconomics

Chapter 15: Great Moderation

Chapter 16: Demand-led growth

Chapter 17: Stock market cycle

Chapter 18: History of macroeconomic thought

Chapter 19: Welfare cost of business cycles

Chapter 20: Regression analysis

Chapter 21: Economic recession in Iran

(II) Answering the public top questions about real business cycle theory.

(III) Real world examples for the usage of real business cycle theory in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Real Business Cycle Theory.