An Increase in Aggregate Demand Causes an Increase in _______

question 197

Multiple Choice

An increase in aggregate demand causes an increase in _______, which in turn induces an increase in _______.

• A)income, consumption
• B)investment, consumption
• C)government spending, net exports
• D)consumption, price

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Definitions:

High Level

Pertaining to a broad, general approach or overview, often referring to decisions or strategies that are made at the upper echelons of an organization.

Large Inventories

Holding significant amounts of stock to handle demand fluctuations, reduce reorder frequency, or ensure product availability.

Supply Chain Costs

The total expenses incurred in the operation of a supply chain, including production, storage, transportation, and distribution costs.

Tailored Postponement

A supply chain strategy that involves delaying the final stages of production or customization of a product until customer demand is better understood.