Problem
1. What are the key ideas of the real business cycle model? How does it explain business cycle fluctuations?
2. What objections to the real business cycle model have been raised?
3. How do new Keynesian ideas about price setting and inflation expectations affect the shortrun aggregate supply curve?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.