Real business-cycle theory (RBC theory) is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real...

months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales." Business cycles are usually thought of as...

Austrian business cycle theory (ABCT) is an economic theory developed by the Austrian School of economics seeking to explain how business cycles occur....

imperfections demonstrated with small models and new classical work on real business cycle theory that used fully specified general equilibrium models and used...

new Keynesian economics developed in the 1980s and earlier with Real Business Cycle Theory. RBC models were dynamic but assumed perfect competition; new...

macroeconomic schools of thought – new classical macroeconomics/real business cycle theory and early New Keynesian economics – into a consensus view on the...

forces that drive business cycles; this empirical work has given rise to two main competing frameworks called the real business cycle model and the New...

with the theory of consumption based in permanent income, and Modigliani (1954, 1963), with the theory of consumption based on the life cycle hypothesis...

heterogeneous agents, or exogenous shocks. Later developments, such as real business cycle theory, extended the model’s structure, allowing for government purchases...

macroeconomic theories that were based on optimizing microeconomic behaviour. These models have been developed into the real business-cycle theory, which argues...

jobs. Another neoclassical explanation of stagnation is given by real business cycle theory, in which any decrease in labour productivity makes it efficient...

Modern monetary theory or modern money theory (MMT) is a heterodox macroeconomic theory that describes currency as a public monopoly and unemployment...

1972) became known for his theories in planned economics. Other members, such as Erik Lundberg, continued as business cycle-oriented economists. Rudolf...

Freshwater theories New classical macroeconomics Homo economicus Lucas critique Efficient-market hypothesis Rational expectations Real business cycle theory Ricardian...

post-Keynesians and others, who object to applications of microeconomic theory to real-world markets, when such markets are not usefully approximated by microeconomic...

Rational expectations is an economic theory that seeks to infer the macroeconomic consequences of individuals' decisions based on all available knowledge...

1963. Friedman, Milton, and Anna Jacobson Schwartz, 1963a. "Money and Business Cycles", Review of Economics and Statistics, 45(1), Part 2, Supplement, p...

Cambridge cash balance approach to theory of money and influenced the trade cycle theory. Until the 1930s, John Maynard Keynes was also influencing the theoretical...

economic theory, consumption of goods and services is assumed to provide utility (satisfaction) to the consumer or end-user, although businesses also consume...

Macroeconomic theory has its origins in the study of business cycles and monetary theory. In general, early theorists believed monetary factors could not...

is a mathematical tool used in macroeconomics, especially in real business cycle theory, to remove the cyclical component of a time series from raw data...

revolutionized the online business as a whole, an example of a positive technology shock. Real business cycle theory (RBCT) is the theory where any type of shock...

fiscal policy is used to stabilise the economy over the course of the business cycle. Changes in the level and composition of taxation and government spending...

available. As businesses face higher prices for underlying inputs, they are forced to increase prices of their outputs. It is contrasted with the theory of demand-pull...

estimates of real income per capita in 1870, biased Baumol's findings. DeLong concludes that there is little evidence to support the convergence theory. The key...

Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces. Endogenous growth theory holds that investment...

years. And a half cycle of 5 years tallies with Jevons's sunspot cycle length of 11 years. Income fluctuates cyclically in Keynes's theory, with the effect...

the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand...

quantitative accuracy. While unemployment exhibits large fluctuations over the business cycle, Robert Shimer has demonstrated that standard versions of matching models...

the Theory of the Trade Cycle. Oxford: Clarendon Press. 1956. A Revision of Demand Theory. Oxford: Clarendon Press. 1958. "The Measurement of Real Income...