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Describe and Explain the Real Business Cycle Theory

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Essay

Describe and explain the real business cycle theory.


Definitions:

Covert Collusion

A secret agreement between firms to fix prices, limit production, or divide markets, which is illegal and anti-competitive.

Cartel

A group of firms behaving like a monopoly.

Competitive Spectrum

The range of competition levels across different markets or industries, from perfect competition to complete monopoly.

Collusion

The practice of firms to negotiate price and/or market share decisions that limit competition in a market.

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