According to Schumpeter,the most important activity that drives business cycles is:

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Schumpeter believed that innovation, specifically the creation of new industries and the introduction of new products or production methods, was the driving force behind economic growth and business cycles. Consumption and savings are important factors as well, but they are seen as consequences rather than causes of economic activity. Schumpeter also did not believe in government direction of the economy, instead advocating for a laissez-faire approach to allow for competition and innovation to flourish.

According to Schumpeter,the Most Important Activity That Drives Business Cycles