How Do Defenders of the Real Business Cycle Theory, (RBC

question 123

Essay

How do defenders of the real business cycle theory, (RBC theory) respond to critics of the theory?

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Definitions:

Felsic

A term used in geology to describe igneous rocks that are rich in light-colored minerals such as quartz, feldspar, and muscovite.

Pyroclastic Flows

High-density mixtures of hot volcanic ash, pumice, rock fragments, and volcanic gas that move away from the volcano at high speeds during an explosive eruption.

Mudflows

Rapid downhill movements of water-saturated earth material, primarily composed of mud and often triggered by heavy rainfall or volcanic activity.

Basaltic Lava

A type of molten rock that emerges from volcanoes or fissures on the Earth's surface, known for its low viscosity due to low silica content.