Keynes Attempted to Explain

question 6

Multiple Choice

Keynes attempted to explain:

• A)short-run economic fluctuations and advocated policies to increase aggregate supply
• B)short-run economic fluctuations and advocated policies to increase aggregate demand
• C)long-run economic growth and advocated policies to increase aggregate demand
• D)long-run economic growth and advocated policies to increase aggregate supply

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Definitions:

Supplies Expense

Costs associated with the consumption of supplies necessary for the daily operations of a business, recognized as an expense in the accounting period in which they are used.

Inventory

The entire inventory of products and materials maintained by a business for selling or manufacturing purposes.

Rent Expense

The cost incurred for using property or equipment under a lease agreement.

Prepaid Rent

Payments made in advance for rent, which is recorded as an asset initially and then expensed over the period the payment covers.