In the Keynesian business cycle theory, business cycles begin with changes in
A) consumer sentiment.
B) the public's expectations about Fed policies.
C) business confidence.
D) inflation expectations.

Question

Quizplus · Accepted Answer

Keynesian business cycle theory suggests that business cycles are primarily driven by changes in business confidence, which affect investment and economic activity.

In the Keynesian Business Cycle Theory, Business Cycles Begin with Changes