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:

Hydrological Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes like evaporation, condensation, and precipitation.

Biogeochemical Cycle

The recycling of inorganic matter between living organisms and their environment, involving processes such as the carbon cycle and nitrogen cycle.

Fossil Fuels

Non-renewable energy sources formed from the remnants of ancient plants and animals, including coal, oil, and natural gas.

Biogeochemical Cycles

Processes that recycle essential elements and compounds between the biological (living) and geochemical (non-living) components of the Earth.