The debate over RBC theory boils down to four issues: Do changes in employment reflect voluntary changes in labor supply? >Does the economy experience large,exogenous productivity shocks in the short run? >Is money really neutral in the short run? >Are wages and prices flexible in the short run?Do they adjust quickly to keep supply and demand in balance in all markets?The debate over RBC theory boils down to four issues: ➢ Do changes in employment reflect voluntary changes in labor supply? ➢ Does the economy experience large, exogenous productivity shocks in the short run? ➢ Is money really neutral in the short run? ➢ Are wages and prices flexible in the short run? Do they adjust quickly to keep supply and demand in balance in all markets?