In the Keynesian Framework, the Way to Fight a Recession

question 196

Multiple Choice

In the Keynesian framework, the way to fight a recession is to

• A) cut taxes and/or increase government spending.
• B) reduce interest rates.
• C) increase the population with more immigration.
• D) do nothing and wait for the economy to return to full employment on its own.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Credit Column

In accounting, the column in ledgers or financial statements where credits are recorded, typically indicating a decrease in assets or an increase in liabilities.

Liabilities

Financial obligations or debts a company owes to others, such as loans, accounts payable, and mortgages.

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.