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. 

From 2004 to 2006, the U.S. budget was ________, private saving was ________ domestic investment, and foreign borrowing was ________

A) in deficit, less than, needed to finance deficit B) balanced, roughly equal to, not needed to finance deficit C) balanced, less than, substantial. D) surplus, greater than, negligible

A characteristic of outsourcing is

a. essentially the opposite of vertical integration b. likely to be profitable exactly when vertical integration is profitable c. it prevents a firm from focusing on its core competencies d. it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain