In the Short Run, Fiscal Policy Has Its Primary Affect

question 46

True/False

In the short run, fiscal policy has its primary affect on aggregate demand but in the long run fiscal policy can influence saving, investment and economic growth.

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Definitions:

Secondary Appraisal

The evaluation of one's ability to cope with the consequences of an encountered stressful event, following an initial assessment of the event's significance.

Stress

A physical, mental, or emotional strain or tension resulting from adverse or demanding circumstances.

Susan Folkman

A psychologist known for her research on stress, coping, and appraisal.

Moderate Exercise

Physical activity that is of moderate intensity, beneficial for health, and includes activities like brisk walking.