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

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