Keynes argued that a principal cause of business cycles is fluctuations in

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Keynes argued that fluctuations in aggregate demand, which is the total demand for goods and services in the economy, is a principal cause of business cycles. This is because changes in aggregate demand can lead to changes in output, employment, and prices, which can create economic booms or recessions. Keynes believed that government intervention, particularly through fiscal policy, could help stabilize aggregate demand and mitigate the impact of business cycles.

Keynes Argued That a Principal Cause of Business Cycles Is