The Impact of Fiscal Stimulus on Aggregate Demand Includes Both

question 105

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.
Fiscal stimulus will set off the multiplier process.As a result of this,aggregate demand will increase (shift)in two distinct steps: (1)the initial fiscal stimulus and (2)induced changes in consumption.

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Definitions:

RLC Series Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in series.

Voltage Drop

The reduction in voltage across a component or conductor as electric current flows through it.

Angle Theta

A measurement in electrical engineering that often refers to the phase angle difference between the voltage and current waveforms in an AC circuit.

RLC Series Circuit

A circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in series, displaying characteristics of resistance, inductance, and capacitance.