Q. What are the two main components of business cycle theories? (Solved)
1. a description of shocks and a model of how the economy responds to them
2. a model of how people decide to spend and a description of the government’s role in the economy
3. a model of how equilibrium is reached and a description of the government’s role in the economy
4. a description of shocks and a description of the government’s role in the economy
- a. a description of shocks and a model of how the economy responds to them