What does the Keynesian model attribute short-run economic fluctuations to?

The Keynesian model emphasizes that short-run economic fluctuations are primarily driven by variations in aggregate demand rather than changes in long-term production capabilities or other factors. According to this framework, when aggregate demand—comprising consumer spending, business investment, government expenditure, and net exports—changes significantly, it can lead to fluctuations in output, employment, and prices.

This perspective argues that during periods of economic downturns, low demand can cause increased unemployment and underutilized resources. Conversely, when demand is high, it can lead to increased production and lower unemployment. This model prioritizes the role of government intervention in managing demand through fiscal and monetary policies to stabilize the economy.

In contrast, the other options touch upon influences that may affect long-term growth trends or structural changes in the economy rather than concentrating on immediate demand fluctuations that the Keynesian model highlights as crucial for short-term economic conditions.