WGU - D089 - Principles of Economics Questions and Answers with
Verified Solutions | Latest 2026 Update
Q: How does a higher level of productivity shift the Short run Aggregate supply
curve (SRAS)?
Answer:
The curve shifts wit the right because with improved productivity firms can produce
a higher quantity of output at every price level.
Q: Every time there is a shift in the long run aggregate supply (LRAS) curve what
effect is there to the short run aggregate supply (SRAS) curve?
Answer:
It also shifts in the same direction
Q: What direction does the short run aggregate supply (SRAS) curve shift when
input costs rise?
Answer:
The curve shifts to the left
,WGU - D089 - Principles of Economics Questions and Answers with
Verified Solutions | Latest 2026 Update
Q: What direction does the short run aggregate supply (SRAS) curve shift when
input costs fall?
Answer:
The curve shifts to the right
Q: What is shown at the intersection of the aggregate supply (AS) and aggregate
demand (AD) curve?
Answer:
The equilibrium level of real GDP and the equilibrium price level in the economy
Q: In the short run, what can occur when real GDP is below potential GDP and a
recessionary gap exists?
Answer:
Equilibrium
,WGU - D089 - Principles of Economics Questions and Answers with
Verified Solutions | Latest 2026 Update
Q: In the long run what will move the economy toward the full employment
equilibrium when a recessionary gap exists?
Answer:
Decreases in wages
Q: In the short run how is equilibrium achieved when an inflationary gap exists?
Answer:
Real GDP is above potential GDP
Q: In the long run what will move the economy toward the full employment
equilibrium when a inflationary gap exists?
Answer:
Increases in wages
Q: What causes short-run variations in unemployment?
Answer:
The business cycle as the economy expands and contracts.
, WGU - D089 - Principles of Economics Questions and Answers with
Verified Solutions | Latest 2026 Update
Q: What typically hovers around 5% in the United States?
Answer:
The unemployment rate
Q: When do higher inflation rates typically occur?
Answer:
Either during or just after an economic boom
Q: What does a shift to the right in the aggregate demand curve indicate?
Answer:
A higher price level and inflation
Q: What does a shift to the left in the aggregate demand curve indicate?
Answer:
A lower price level and unemployment
Verified Solutions | Latest 2026 Update
Q: How does a higher level of productivity shift the Short run Aggregate supply
curve (SRAS)?
Answer:
The curve shifts wit the right because with improved productivity firms can produce
a higher quantity of output at every price level.
Q: Every time there is a shift in the long run aggregate supply (LRAS) curve what
effect is there to the short run aggregate supply (SRAS) curve?
Answer:
It also shifts in the same direction
Q: What direction does the short run aggregate supply (SRAS) curve shift when
input costs rise?
Answer:
The curve shifts to the left
,WGU - D089 - Principles of Economics Questions and Answers with
Verified Solutions | Latest 2026 Update
Q: What direction does the short run aggregate supply (SRAS) curve shift when
input costs fall?
Answer:
The curve shifts to the right
Q: What is shown at the intersection of the aggregate supply (AS) and aggregate
demand (AD) curve?
Answer:
The equilibrium level of real GDP and the equilibrium price level in the economy
Q: In the short run, what can occur when real GDP is below potential GDP and a
recessionary gap exists?
Answer:
Equilibrium
,WGU - D089 - Principles of Economics Questions and Answers with
Verified Solutions | Latest 2026 Update
Q: In the long run what will move the economy toward the full employment
equilibrium when a recessionary gap exists?
Answer:
Decreases in wages
Q: In the short run how is equilibrium achieved when an inflationary gap exists?
Answer:
Real GDP is above potential GDP
Q: In the long run what will move the economy toward the full employment
equilibrium when a inflationary gap exists?
Answer:
Increases in wages
Q: What causes short-run variations in unemployment?
Answer:
The business cycle as the economy expands and contracts.
, WGU - D089 - Principles of Economics Questions and Answers with
Verified Solutions | Latest 2026 Update
Q: What typically hovers around 5% in the United States?
Answer:
The unemployment rate
Q: When do higher inflation rates typically occur?
Answer:
Either during or just after an economic boom
Q: What does a shift to the right in the aggregate demand curve indicate?
Answer:
A higher price level and inflation
Q: What does a shift to the left in the aggregate demand curve indicate?
Answer:
A lower price level and unemployment
