Keynes believed that abrupt changes in spending behavior
A)Have no effect on the economy.
B)Help stabilize the economy.
C)Cause recurring business cycles.
D)Move the economy to full employment.

Question

Quizplus · Accepted Answer

Keynes believed that abrupt changes in spending behavior can lead to fluctuations in aggregate demand, which in turn cause recurring business cycles due to their impact on output and employment levels.

Keynes Believed That Abrupt Changes in Spending Behavior