<p>In this paper, we investigate a four-dimensional dynamic nonlinear model inspired by Kaleckian theory that was developed by Murakami and Asada. The model describes the dynamics of the utilization rate, wage share, nominal interest rate, and expected inflation rate. We analyze the impact of the model's parameters on the qualitative properties of solutions in the neighbourhood of its equilibrium, with particular emphasis on equilibrium stability and the existence of business cycles. Our results prove that specific parameter values can induce business cycles. The methodology employed to establish this finding is based on Hopf bifurcation theory and the theory of normal forms of dynamic systems. The qualitative characteristics of the arising business cycles are determined by the bifurcation equation of the model, the construction of which is detailed in this study. Numerical simulations illustrate the impact of the parameter expressing the speed of revisions in inflation–deflation expectations on the qualitative properties of the corresponding business cycles for selected values of model parameters. This approach also offers insights into how other model parameters influence the qualitative properties of solutions. The insights gained from this study can be utilized by monetary and fiscal policy managers to regulate the economy with the aim of achieving sustainable growth.</p>