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How can government spending trigger a chain of events that helps to improve the economy?

This theory comes from John Maynard Keynes's theories on the economy. High government spending (AKA running a budget deficit) means that there is an increased demand in the market for business output, which will result in increased employment, which will result in higher incomes, which will result in increased consumer spending, which well then result in even more demand. This practice is theoretically most useful to bring an economy out of a recession and reverse high unemployment.


What is the role of marginal analysis?

The process of identifying the benefits and costs of different alternatives by adding one extra unit of any input variable (raw materials, Machines and workers etc.) but others factors should be remaining constant. This is the very useful tool for evaluating the alternative in the process of effective Decision making process.


Is break even analysis useful in sensitivity analysis?

Yes, break-even analysis is useful in sensitivity analysis as it helps identify the point at which total revenues equal total costs, providing a clear benchmark for evaluating how changes in key variables (such as price, costs, or sales volume) impact profitability. By understanding the break-even point, businesses can assess the risk associated with different scenarios and make informed decisions regarding pricing strategies, cost management, and sales targets. This analysis enables organizations to visualize how sensitive their financial outcomes are to fluctuations in these factors.


Are quotas useful?

Quotas are useful especially in sampling when selecting survey participants.


How biogas can be specially useful in developing countries?

explain how biogas can be specially useful in developing countries

Related Questions

What is epuifax free credit report most useful for?

Equifax free credit report is most useful for checking a person (s) spending and payment habits by seeing how her or she does in paying their bill(s)after purchasing an item online or in retail stores.


What does evaluating media message mean?

Evaluating media messages is to see how good, useful or successful media messages can be.


When is a budget useful?

Budget is useful when you are running out of money and have to cut spending.


In which step is it most useful to use quantitive analysis?

Evaluating alternatives


LEAST useful for evaluating the range of products that may meet your requirement?

A limited survey sample size can be the least useful for evaluating the range of products that may meet your requirement as it may not give a comprehensive understanding of the available options in the market.


How is bone marrow useful in clinical practice?

bone marrow is blood really, and it isn't useful in clinical practice at all


Why is classifying mammals by feeding habits not particularly useful to phylogenetic studies?

Answer this question


Why accounting is useful?

Accounting is useful because it keeps track of where the money is coming from and where money goes. It is useful to businesses and to individuals who want to track their spending and income.


Is grading on a curve a good practice for evaluating student performance?

Grading on a curve can be a useful tool for evaluating student performance in some situations, as it allows for a comparison of students' performance relative to their peers. However, it also has limitations and may not always accurately reflect individual achievement or mastery of the material. It is important for educators to consider the context and purpose of using a curve when assessing student performance.


What is CDS used for?

CDS has proven extremely useful for evaluating the blood flow to the placenta and uterus during pregnancy


The following type of information is LEAST useful for evaluating the range of products that may meet your requirement?

Cost driving factors


How can government spending trigger a chain of events that helps to improve the economy?

This theory comes from John Maynard Keynes's theories on the economy. High government spending (AKA running a budget deficit) means that there is an increased demand in the market for business output, which will result in increased employment, which will result in higher incomes, which will result in increased consumer spending, which well then result in even more demand. This practice is theoretically most useful to bring an economy out of a recession and reverse high unemployment.