The article looks at how business cycles work in the G7 countries from 1960-89. They used a method from Kydland and Prescott (1990) to study this. The findings show that real business cycles can explain many important patterns in these countries. For example, consumption goes up and down with the economy, but not as much as output. Investment also follows the economy, but more closely than output. Net exports tend to move in the opposite direction of the economy. Prices also go down when the economy is up. However, labor dynamics are harder to explain with this model, especially variations in total hours worked. This suggests that keeping workers on during slow times might be a big reason for how employment changes, especially in Europe and Japan.