As Contrasted to the Keynesian View, Mainstream Economists Believe That

question 19

Multiple Choice

As contrasted to the Keynesian view, mainstream economists believe that ________ than Keynesian economists believe.

• A) the effects from fiscal stimulus are weaker
• B) the multiplier effect is larger
• C) potential GDP is less important
• D) any crowding-out effect is smaller
• E) the real GDP growth rate is larger

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Definitions:

Lifo Inventory

A method of inventory valuation where the last items placed into inventory are the first ones taken out, used to calculate the cost of goods sold and ending inventory.

Basic Earnings Per Share (Eps)

Basic Earnings Per Share (EPS) is a calculation used to gauge a company's profitability on a per-share basis, dividing net earnings available to common shareholders by the average outstanding shares.

Net Income

The remaining income of a company after deducting expenses and taxes from the total income generated.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in accounting and inventory valuation.