The ________ theory emphasizes that changing expectations about the future is the main reason behind fluctuations in an economy.
A) real business cycle
B) Keynesian
C) Ricardian
D) monetary

Question

Quizplus · Accepted Answer

The Keynesian theory emphasizes that changes in expectations about the future, particularly about future demand, can lead to fluctuations in the economy. This theory suggests that government intervention can help stabilize the economy by influencing these expectations, for example, through fiscal policy.

The ________ Theory Emphasizes That Changing Expectations About the Future