The Impact of Fiscal Stimulus on Aggregate Demand Includes Both

question 10

True/False

The impact of fiscal stimulus on aggregate demand includes both new government spending and all subsequent induced increases in consumer spending triggered by the initial government outlays.

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Definitions:

Temporary Account

Accounts that are closed at the end of each accounting period, including revenues, expenses, and withdrawals.

Unadjusted Trial Balance

A preliminary report of all accounts in the general ledger before any adjusting entries are made to ensure debits equal credits.

Adjustments

Journal entries made to correct or update accounting records and financial statements, often at the end of an accounting period.

Prepayment of Expenses

The payment for goods or services before they are received or consumed, often recorded as an asset on the balance sheet until used.