According to Keynesian school theory, business cycles are caused by: A)changes in technology over time. B)excessive optimism or pessimism among business managers. C)inappropriate variations in the growth of the money supply.
In Keynesian business cycle theory, business cycles are caused primarily by changes in expectations about economic growth. Business managers overinvest when they are excessively optimistic and underinvest when they are excessively pessimistic.
