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Complete each of the columns on the table below, indicating in which section each item would be reported on the statement of cash flow (Operating, Investing, or Financing), the amount that would be reported, and whether the item would create an increase or decrease in cash. For item that affect more than one section of the statement, indicate all affected. Assume the indirect method of reporting cash flows operating activities.
The first item has been completed as an example.
Federal Budget
An estimate of government expenditures and revenues for a specific fiscal year, as determined by the President and Congress in the United States.
Aggregate Demand
The total demand for all goods and services within a particular market or economy.
Aggregate Supply
The total supply of goods and services that firms in a national economy plan on selling during a specific time period.
Equilibrium GDP
The level of Gross Domestic Product at which total production equals total spending, indicating a state of economic balance without tendency to change.
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