According to Classical Economic Theory

question 269

Multiple Choice

According to classical economic theory

• A)expansionary fiscal policies are required to bring the economy out of recession.
• B)deficit financing is the only effective remedy for recession.
• C)fiscal policies are more effective than monetary policies as economic stabilization tools.
• D)if the economy is experiencing excessive inflation,the government should raise taxes and/or cut expenditures.
• E)falling wages and prices would be the natural cure to recession.

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Definitions:

Capacity Swaps

Capacity swaps involve the exchange of production capacity or output between companies, usually to meet demand or manage surplus without the exchange of monetary payment.

Telecommunications Companies

Businesses that provide services in communication over long distances through phones, internet, cable, and other technologies.

Prematurely Recognize

Recording revenue or expenses in financial statements before the criteria for such recognition are fully met.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used internationally.