Keynes believed that the combination of unplanned and alternating AD shifts reinforced by multiplier effects causes recurring business cycles.

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Keynes believed that fluctuations in aggregate demand, augmented by the multiplier effect, were the primary cause of business cycles. These AD shifts could be caused by changes in investment, government spending, or consumer spending, and the resulting fluctuations could lead to periods of economic expansion and contraction.

Keynes Believed That the Combination of Unplanned and Alternating AD