CFA Practice Question

There are 923 practice questions for this topic.

CFA Practice Question

The Keynesian model believes that changes in ______ bring an economy to equilibrium.

A. demand
B. output prices
C. resource prices
Correct Answer: A

Classical economists believe that prices bring the economy to full employment.

User Contributed Comments 3

User Comment
examinee Keynesian view is based on the demand side.
fuller if demand changes, supply will change to bring an economy to equilibrium.
kuan Actual expenditure is linked to aggregate demand. Where AE = output, there is equilibrium.
Economy at equilibrium is not refering to the supply and demand equilibrium although they are connected. It is looking more into the potential of the economy given the amount of resources the economy has.
You need to log in first to add your comment.