Discuss new classical economics and real business cycle theory
What will be an ideal response?
New classical economics refers to that area of research where it is assumed that there is sufficient wage and price flexibility. It was a fairly logical extension of Lucas' work on rational expectations. Real business cycle theory attempts to explain fluctuations in output as changes in the natural level of output.
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Purchasing power parity may not hold in practice due to all of the following except
A) transportation costs. B) cross-country differences in environmental regulations. C) trade barriers like tariffs and quotas. D) the existence of non-traded goods.
The Bureau of Labor Statistics produces data on unemployment by using data on claims filed for unemployment insurance
a. True b. False Indicate whether the statement is true or false