Abstract on Real Business Cycl

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…supply shocks to the economy. Mankiw finishes by stating that, because of lack of evidence to support their ideas, he believes the real business cycle theory will eventually be considered an unreasonable explanation for business cycle fluctuations. Although it might provide the wrong answers, it has provoked further examination of certain aspects of the economy. This, in turn, will undoubtedly lead to progress in the area of understanding the ups and downs of the economy