According to Keynes,which of the Following Can Be Used to Slow

question 117

Multiple Choice

According to Keynes,which of the following can be used to slow down an overheated economy?

• A)Decrease government purchases.
• B)Decrease taxes.
• C)Make more money available.
• D)Employ more people.

---

Definitions:

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items.

Cost Flow Assumption

An accounting principle that determines the method used to assign costs to inventory and to cost of goods sold, including FIFO, LIFO, and average cost methods.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company. This includes the cost of materials and direct labor.

LIFO Liquidation

The process of selling older inventory items purchased at lower costs, which can lead to an artificially higher reported profit due to inflation.