Fluctuations in business confidence is the factor leading to business cycles in the
A) Keynesian cycle theory.
B) new Keynesian cycle theory.
C) new classical cycle theory.
D) monetarist cycle theory.

Question

Quizplus · Accepted Answer

In the Keynesian cycle theory, fluctuations in business confidence are considered a key factor leading to business cycles. This theory emphasizes the role of aggregate demand and how changes in confidence can lead to significant shifts in economic activity.

Fluctuations in Business Confidence Is the Factor Leading to Business