Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 

Which of the following is a major reason for offshoring?

a. The gradual reduction in information and communication technologies. b. The fragmentation of production processes. c. The gradual decline in worldwide competition. d. All of the above are major reasons for offshoring.

Neoclassical economists who focus on potential GDP as the primary determinant of real GDP argue that the long-run aggregate _______________ curve is located at potential GDP.

a. demand b. supply c. production d. labor