Economic fluctuations as optimal responses to shocks In Real Business Cycle theory,fluctuations in our economy are similar to those in Crusoe's economy. The shocks aren't always desirable.But once they occur, fluctuations in output,employment,and other variables are the optimal responses to them. • Economic fluctuations as optimal responses to shocks • In Real Business Cycle theory, fluctuations in our economy are similar to those in Crusoe’s economy. • The shocks aren’t always desirable. But once they occur, fluctuations in output, employment, and other variables are the optimal responses to them