Fiscal Policy Can Be Used to Influence Both Aggregate Demand

question 12

True/False

Fiscal policy can be used to influence both aggregate demand and aggregate supply.

---

Definitions:

Operating Activities

Activities that relate directly to the principal revenue-generating activities of a business, such as sales and service provision.

Indirect Method

A method used in cash flow statements to adjust net income for non-cash transactions and changes in working capital to arrive at operating cash flow.

Cash Flows

The complete sum of cash flowing in and out of a company, particularly influencing its ability to cover immediate expenses.

Investments

Assets purchased with the expectation that they will generate income or appreciate in value over time.