The factor that leads to business cycles within the Keynesian cycle theory is
A) the growth rate of labor productivity.
B) the growth rate of the quantity of money.
C) adverse shocks to international trade.
D) fluctuations in business confidence.

Question

Quizplus · Accepted Answer

Keynesian cycle theory primarily attributes business cycles to fluctuations in business confidence. These fluctuations can lead to changes in investment and consumption, which in turn cause economic expansions and contractions.

The Factor That Leads to Business Cycles Within the Keynesian