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

Question

Quizplus · Accepted Answer

In Keynesian business cycle theory, business cycles often begin with changes in business confidence, which can lead to increased or decreased investment and subsequently affect economic activity.

In the Keynesian Business Cycle Theory, Business Cycles Begin with Changes