In the long run,fiscal policy influences
A)saving,investment,and growth;in the short run,fiscal policy primarily influences technology and the production function.
B)saving,investment,and growth;in the short run,fiscal policy primarily influences the aggregate demand for goods and services.
C)technology and the production function;in the short run,fiscal policy primarily influences saving,investment,and growth.
D)the aggregate demand for goods and services;in the short run,fiscal policy primarily influences technology and the production function.

Question

Quizplus · Accepted Answer

In the long run, fiscal policy influences saving, investment, and growth. However, in the short run, fiscal policy primarily influences the aggregate demand for goods and services. This is because fiscal policy tools, such as government spending and taxation, can directly impact consumer and business spending, which affects the overall demand for goods and services. The impact on saving, investment, and growth is more indirect and takes longer to materialize.

In the Long Run,fiscal Policy Influences