What is Lucas Business Cycle?

Lucas came up with the different view on business cycle. He assumed that there exists imperfect information among various agents like producers, consumers in the market. According to Lucas, every producer faces a tradeoff between work and leisure. Depending on the price of his good, a producer decides the number of hours he will spent on production. Assuming that all producers produce one kind of good and selling price of the output is identified as real wages.