One model of the business cycle claims that volatile business confidence is the primary factor in starting a business cycle. This model is the
A) aggregate supply model.
B) circular flow model.
C) Keynesian cycle theory.
D) real business cycle model.

Question

Quizplus · Accepted Answer

The Keynesian cycle theory emphasizes the role of changes in business confidence and expectations in driving economic fluctuations, making it the model that attributes business cycles to volatile business confidence.

One Model of the Business Cycle Claims That Volatile Business