- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 11. Understanding Business Cycles
- Subject 4. Theories of the Business Cycle
CFA Practice Question
The Keynesian school concludes that business cycle fluctuations in real GDP are generally the result of fluctuations in ______.
B. aggregate demand
C. potential GDP
A. short-run and long-run aggregate supply
B. aggregate demand
C. potential GDP
Correct Answer: B
User Contributed Comments 3
| User | Comment |
|---|---|
| To-be-CFA | A: Only short-run matters for Keynesian C: Irrelevant for any theory of school |
| schweitzdm | Keynesian is heavily reliant upon demand-side |
| abeeman924 | The Keynesian view has been right on a lot of topics since the '08 recession. just some food for thought. |