Question: 1. (10 marks) Edward Prescott once wrote: Despite the impression created by some economic pundits, the (...) economy is not a delicate little machine that

1. (10 marks) Edward Prescott once wrote: "Despite the impression created by some economic pundits, the (...) economy is not a delicate little machine that needs to be fine-tuned with exact precision by benevolent policymakers to keep from breaking down." Provide a brief justification of Prescott's view based on the results of the Real Business Cycle Theory studied in class

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