- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics (1)
- Reading 15. Understanding Business Cycles
- Subject 2. Theories of the Business Cycle
CFA Practice Question
Which statement is false?
A. The real business cycle theory states that unemployment can only be short-term.
B. Austrian economists advocate government intervention in the form of fiscal policy.
C. Keynesian cyclical policies are focused on the short-term.
Explanation: Austrian economists actually advocate limited government intervention in the economy.
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