Suppose that managers forecast a large decline in expected sales and profits and so their confidence plummets. According to the _ _, this forecast might start a recession.
A)monetarist cycle theory
B)Keynesian cycle theory
C)new classical cycle theory
D)circular flow theory

Question

Quizplus · Accepted Answer

According to the Keynesian cycle theory, a decline in business confidence can lead to reduced investment and spending, which can trigger a recession.

Suppose That Managers Forecast a Large Decline in Expected Sales