15.2 Real-Business-Cycle Theory's Explanation to Important Economic Variables o Explanations to the fluctuations of output, consumption investment o Use simplified"Ramsey-Cass-Coopmans"model to analyze 2 Object functions max EU=El2Bu(CtI .tY=f(K)=C+l,K=l+()Kt u>0,u”<0;f>0,f"<0 友学经济学院15.2 Real-Business-Cycle Theory’s Explanation to Important Economic Variables ❖ Explanations to the fluctuations of output, consumption & investment Use simplified “Ramsey-Cass-Coopmans” model to analyze ： ❖Object functions： t t t t t 1 t t t i 0 i t t s.t.Y f(K ) C I ,K I (1 )K max E U E [ u(C )]   = = + = + − = +  =  u   0,u   0;f  0,f  0