If a Component of Aggregate Demand Increases

question 75

Multiple Choice

If a component of aggregate demand increases,

• A)GDP in the United States is likely to increase less than that component of spending increased.
• B)GDP in the United States is likely to increase more than that component of spending increased.
• C)GDP in the United States is likely to decrease.
• D)GDP in the United States will not change.

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Definitions:

In-house

Referring to activities or operations that are carried out within an organization by its own members or resources, rather than being outsourced.

Outsourcing Arrangements

Agreements where one company hires an external party to perform services or create goods that traditionally were performed in-house.

Cost Savings

Reductions in expenses, achieved through efficiency improvements, negotiation, or eliminating wasteful practices, contributing to an organization's financial health.

Incompetent Outsourcer

A third-party provider that fails to meet the contractual performance standards or expectations in delivering services or products.