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Answer to Question #129271 in Economics of Enterprise for Kealeboha

Question #129271
Keynesian believe that fluctuations in economic activity (business cycle)
1
Expert's answer
2020-08-11T08:50:10-0400

Business cycles are periodic fluctuations of employment, income and output. According to Keynes, income and output depend upon the volume of employment. The volume of employment is determined by three vari­ables: the marginal efficiency of capital, the rate of interest and the propen­sity to consume.


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