According to Keynesian coordination failure theory,the primary causes of business cycles are
A) shocks to aggregate demand.
B) monetary factors.
C) technology shocks.
D) waves of self-fulfilling optimism and pessimism.

Question

Quizplus · Accepted Answer

Keynesian coordination failure theory suggests that business cycles are primarily caused by waves of self-fulfilling optimism and pessimism, where individuals' expectations about the economy can lead to changes in aggregate demand.

According to Keynesian Coordination Failure Theory,the Primary Causes of Business