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:

Limited Risk

Exposures to potential losses that are confined or restricted in magnitude, often through strategies such as diversification or the use of financial instruments like options.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a hierarchy, from basic physiological needs to self-actualization.

Individual Needs

The specific requirements or preferences of a single person, often considered in healthcare, education, and customer service.

Institutional Markets

Markets composed of customers like schools, hospitals, and governments that acquire goods and services for use in delivering their own services.