Distinguish a Keynesian from a Classical Economist,and Give Your View

question 14

Essay

Distinguish a Keynesian from a Classical economist,and give your view of how they would respond to an economy falling into a recession

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Definitions:

Sales

The activity of selling goods or services in exchange for money or other compensation.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income.

EPS

Earnings Per Share; a company's profit divided by the outstanding shares of its common stock, indicating company profitability on a per-share basis.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profitability that excludes interest and income tax expenses.