CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

No government intervention is needed if a recession occurs. Unemployment and excess supply of goods will be solved by allowing market prices to decrease until all markets clear. This is the view of the ______.

A. Neoclassical school
B. Keynesian school
C. New Classical school
Correct Answer: A

Neoclassical economists believe that supply creates its own demand and that all markets will reach equilibrium because of the "invisible hand."

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