The Idea That the Government Should Increase Spending in Times

question 93

Multiple Choice

The idea that the government should increase spending in times of economic struggle to raise demand for goods and services is characteristic of which economic theory?

• A) Keynesian economic theory
• B) trickle-down economic theory
• C) supply-side economics
• D) laissez-faire economics

---

Definitions:

Work Sheet

A document or tool used for planning, calculations, and maintaining records, especially in accounting to draft financial statements.

Financial Statements

Reports that summarize the financial performance and position of a company.

Working Papers

Documents prepared or obtained by auditors as part of their audit process, containing the evidence and conclusions on which their opinion is based.

Accounting Adjustments

Entries made in the books of accounts to accurately reflect the revenues and expenses for a given period, including accruals, deferrals, and estimates.