CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The Keynesian model indicates that changes in ______ cause changes in output while neoclassical economists believe that changes in ______ cause changes in output.
A. demand; market price
B. resource price; goods and service prices
C. government budget deficit size; market price
Explanation: Demand (aggregate expenditures) is the catalyst of the Keynesian model. Supply just follows it until full employment is reached. Neoclassical economists believe that supply creates its own demand and fluctuations in market price will bring the market into equilibrium.

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