Economics WGU D089 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: How will the long-run aggregate supply (LRAS) curve respond to this situation?
Answer:
Shifts to the right Remains the same Becomes horizontal Shifts to the left Shifts to
the right
Q: Correct! Increase in productivity shifts the LRAS curve to the right.
Answer:
Q: What is a disadvantage of exporting goods and services to other countries?
Answer:
,Economics WGU D089 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: Companies retain ownership of production instead of licensing the
manufacturing of their
Answer:
products.
Local companies do not achieve economies of scale, increasing the cost of their
products.
Exports potentially add another layer in the chain of distribution through wholesalers.
International markets decrease efficiency and income of local producers. Exports
potentially
add another layer in the chain of distribution through wholesalers.
Q: Correct! Wholesalers, importing companies, and other intermediaries are part of
international
Answer:
trade distribution chains. Their existence facilitates trade across borders but adds
costs to
international trade transactions.
,Economics WGU D089 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: The U.S. Bureau of Labor Statistics (BLS) uses the cost of a fixed basket that
represents the average family's purchases to calculate a measure of inflation.
Which measure is being calculated?
Answer:
Substitution bias Consumer price index
Q: Hyperinflation rate
Answer:
Cost-of-living adjustments Consumer price index
Q: Correct! Consumer price index is a measure of inflation that U.S. government
statisticians
Answer:
calculate based on the price level from a fixed basket of goods and services that
represents the
average consumer's purchases.
, Economics WGU D089 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: The University of Michigan's "Surveys of Consumers" has shown a sharp
decline in consumer confidence. How will this change affect aggregate demand?
Answer:
There will be movement down and to the right along the aggregate demand curve.
There will be movement up and to the left along the aggregate demand curve. The
aggregate demand curve will shift to the left. The aggregate demand curve will shift
to the right. The aggregate demand curve will shift to the left.
Q: Correct! Consumer confidence is a principal component of aggregate demand.
Declining
Answer:
consumer confidence will reduce consumption, so aggregate demand will decrease,
shifting the
curve to the left.
Latest 2026 Update
Q: How will the long-run aggregate supply (LRAS) curve respond to this situation?
Answer:
Shifts to the right Remains the same Becomes horizontal Shifts to the left Shifts to
the right
Q: Correct! Increase in productivity shifts the LRAS curve to the right.
Answer:
Q: What is a disadvantage of exporting goods and services to other countries?
Answer:
,Economics WGU D089 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: Companies retain ownership of production instead of licensing the
manufacturing of their
Answer:
products.
Local companies do not achieve economies of scale, increasing the cost of their
products.
Exports potentially add another layer in the chain of distribution through wholesalers.
International markets decrease efficiency and income of local producers. Exports
potentially
add another layer in the chain of distribution through wholesalers.
Q: Correct! Wholesalers, importing companies, and other intermediaries are part of
international
Answer:
trade distribution chains. Their existence facilitates trade across borders but adds
costs to
international trade transactions.
,Economics WGU D089 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: The U.S. Bureau of Labor Statistics (BLS) uses the cost of a fixed basket that
represents the average family's purchases to calculate a measure of inflation.
Which measure is being calculated?
Answer:
Substitution bias Consumer price index
Q: Hyperinflation rate
Answer:
Cost-of-living adjustments Consumer price index
Q: Correct! Consumer price index is a measure of inflation that U.S. government
statisticians
Answer:
calculate based on the price level from a fixed basket of goods and services that
represents the
average consumer's purchases.
, Economics WGU D089 Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: The University of Michigan's "Surveys of Consumers" has shown a sharp
decline in consumer confidence. How will this change affect aggregate demand?
Answer:
There will be movement down and to the right along the aggregate demand curve.
There will be movement up and to the left along the aggregate demand curve. The
aggregate demand curve will shift to the left. The aggregate demand curve will shift
to the right. The aggregate demand curve will shift to the left.
Q: Correct! Consumer confidence is a principal component of aggregate demand.
Declining
Answer:
consumer confidence will reduce consumption, so aggregate demand will decrease,
shifting the
curve to the left.
