What Does Fiscal Policy Primarily Affect in the Short Run

question 36

Multiple Choice

What does fiscal policy primarily affect in the short run?

• A)saving
• B)investment
• C)aggregate demand
• D)aggregate supply

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Definitions:

Equipment Cost

The purchase price of machinery and tools required for manufacturing or providing services, excluding ongoing operating expenses.

Salvage Value

The calculated sale amount an asset is deemed to achieve after its useful life concludes.

Useful Life

The duration of time over which an asset is expected to be usable for its intended purpose.

Balance Sheet

A financial statement that showcases a company's assets, liabilities, and shareholders' equity at a specific point in time, reflecting its financial condition.