According to the Keynesian View, the Rapid Increase in Government

question 73

Multiple Choice

According to the Keynesian view, the rapid increase in government spending and large budget deficits in response to the recession of 2008-2009 would

• A)slow the recovery process and result in weak long-term growth of real GDP.
• B)speed the recovery process and provide the foundation for strong long-term growth of real GDP.
• C)stimulate a more rapid recovery, but cause the economy to fall back into a recession in the near future.
• D)slow the recovery process, but provide the foundation for rapid long-term growth of real GDP.

---

Definitions:

Prospective Approach

A method of accounting that applies new standards or changes in accounting policy to transactions occurring after the date of the change or standard implementation.

Debit

An entry on the left side of an account, representing an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.

Increase

An uptick or rise in a statistical value or quantity.

Diluted Earnings Per Share

A metric that shows the quality of a company's earnings per share if all convertible securities were exercised.