This study examines the impact of digital technology on economic volatility, also known as the business cycle, by using a famous methodology called the DSGE model. Two major models are constructed, namely the baseline one-sector model and the two-sector model. The baseline one-sector model is constructed to express the reactions of variables to technology, fiscal policy, and monetary policy shocks in both closed and open economies. The two-sector model is formulated by separating the production part of the economy into two sectors, namely the ...