In a stock-flow consistent macroeconomics, we have to always trace the impact of flows during a period on the relevant stocks at the end of the period. Accordingly, government and private investment spending are two examples of flows that adds to the stock of aggregate spending which in turn impacts on GDP.
Answer: False
The answer is False.
This is a very easy test of the difference between flows and stocks.
All expenditure aggregates - such as government spending and investment spending are flows.
They add up to total expenditure or aggregate demand which is also a flow rather than a stock.
Aggregate demand (a flow) in any period) determines the flow of income and output in the same period (that is, GDP).
So while flows can add to stock - for example, the flow of saving adds to wealth or the flow of investment adds to the stock of capital - flows can also be added together to form a "larger" flow.
That is enough for today!
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