Real Business Cycles

@article{Long1983RealBC,
  title={Real Business Cycles},
  author={John B. Long and Charles I. Plosser},
  journal={Journal of Political Economy},
  year={1983},
  volume={91},
  pages={39 - 69}
}
In this paper we demonstrate how certain very ordinary economic principles lead maximizing individuals to choose consumption-production plans that display many of the characteristics commonly associated with business cycles. Our explanation is entirely consistent with (i) rational expectations, (ii) complete current information, (iii) stable preferences, (iv) no technological change, (v) no long-lived commodities, (vi) no frictions or adjustment costs, (vii) no government, (viii) no money, and… 
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