Suppose the Economy Suffers a High Rate of Unemployment

question 215

Multiple Choice

Suppose the economy suffers a high rate of unemployment. According to Keynesian economists, the government should increase employment by

• A) decreasing money supply.
• B) balancing the budget.
• C) not doing anything.
• D) increasing government spending.

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Definitions:

Accounting Principles

Fundamental guidelines or rules that govern the field of accounting, such as consistency, relevance, reliability, and comparability.

Unusual Item

An event or transaction that is not expected to recur frequently or that is unusual in nature, affecting a company's financial statements.

Prior Period

Referring to a previous time frame in financial reporting or analysis.

Unusual Item

A term used in financial accounting to refer to gains or losses that are infrequent or unusual in nature, not part of the company's ordinary operations.