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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