Keynesian Theory

question 133

Multiple Choice

Keynesian theory

• A)Established the validity of Say's Law.
• B)Assumes that supply creates its own demand.
• C)Is primarily demand-oriented.
• D)Assigns much importance to aggregate supply and the average price level.

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Definitions:

Warranty Cost

Expenses incurred by a company to repair, replace, or refund products that are found to be defective after purchase.

Expense Recognition Principle

An accounting concept that expenses should be recognized in the period when the revenues generated by such expenses are recognized.

Payroll Tax Expense

Payroll tax expense refers to the taxes that employers are required to pay on behalf of their employees, such as Social Security and Medicare taxes in the United States.

Estimated Warranty Costs

The projected expenses a company expects to incur for repairing or replacing products under warranty.