The Four Criteria That Are Frequently Used in Judging the Outcome

question 129

Multiple Choice

The four criteria that are frequently used in judging the outcome of economic policy are

• A) efficiency, equity, stability, and economic growth.
• B) efficiency, equality, stability, and economic growth.
• C) efficiency, equality, profitability, and stability.
• D) efficiency, equity, profitability, and stability.

Analyze the consequences of shifts in aggregate demand or aggregate supply on the economy's equilibrium.

Recognize the importance of the interest rate, real wealth effect, and investment-savings relationship in determining economic equilibrium.

Assess the role of government intervention in addressing economic instability according to Keynesian theory.

Understand the concepts of supply and demand as explained by Say’s Law and how it contrasts with Keynesian views.

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Definitions:

Intra-entity Gross Profit

The gross profit resulting from transactions within the same company or between parent and subsidiary companies, which may need to be eliminated in consolidated financial statements.

Consolidation Worksheet

A tool used in preparation of consolidated financial statements that helps combine the financials of a parent company and its subsidiaries.

Goodwill

An intangible asset on a company's balance sheet representing the premium paid over the book value of the assets acquired in a merger or acquisition.

Undervalued Equipment

Equipment or assets that are appraised or recorded on financial statements at a value less than their true market value.