Final answer:
It is true that changes in accounting policies can lead to shifting current expenses to a different period, which can impact the presentation of financial statements and potentially influence fiscal policy effectiveness.
Step-by-step explanation:
True: Changes in accounting policies can indeed lead to the shifting of current expenses to a later or earlier period. This flexibility can sometimes be used strategically to smooth out earnings over periods.
Accounting policies define how transactions and other accounting events are to be recognized, measured, and presented in the financial statements. A classical example of a change in accounting policy might be switching from one depreciation method to another. If a company switches from an accelerated to a straight-line depreciation method, it may decrease expenses in the current period and increase them in later periods.
Countercyclical fiscal policies are designed to offset cyclical changes in economic activity. During recessions, governments engage in deficit spending to stimulate growth. As the economy recovers, they move to surplus budgets to cool down inflationary pressures. Yet, these temporary measures may not be as effective as permanent policy changes because expectations and long-term planning among businesses and consumers are not substantially altered.