Short answers, pulled from the story.
Finn E. Kydland and Edward C. Prescott published the paper Time to Build And Aggregate Fluctuations in 1982. This publication changed how economists viewed economic ups and downs by shifting focus from nominal shocks to real factors.
Real Business Cycle Theory posits that random technological shifts serve as the primary driver of economic activity. These shocks include innovations, bad weather events, oil price spikes, or stricter environmental regulations that alter capital and labor effectiveness.
The theory states that unemployment reflects only changes in how much people want to work rather than a lack of jobs. Economist Kevin D. Hoover argued this assumption implies 25% unemployment at Great Depression height in 1933 resulted from mass vacation choices.
Critics argue there is no microeconomic evidence supporting large sudden changes in production technology driving the entire model. Larry Summers stated his view that these models have nothing to do with observed business cycle phenomena in capitalist economies.
George W. Stadler published findings in December 1994 questioning whether real business cycles truly explain economic behavior as claimed. His research challenged the ability of RBC models to account for dynamics displayed by United States gross national product data.