WGU D089 LATEST EXAM PRINCIPLES OF ECONOMICS EXAM QUESTIONS AND CORRECT ANSWERS | LATEST VERSION | ALREADY GRADED A+ | RECENT VERSION

WGU D089 LATEST EXAM PRINCIPLES OF ECONOMICS EXAM QUESTIONS AND CORRECT ANSWERS | LATEST VERSION | ALREADY GRADED A+ | RECENT VERSION Investment (Business Spending) - ANSWER️Investment refers to the purchase of new capital goods, new commercial real estate and equipment, residential housing construction, and inventories. Government Spending - ANSWER️All government consumption, investment, and transfer payments Deficit - ANSWER️An excess of expenditure or liabilities over income or assets in a given period. Surplus - ANSWER️Occurs when income earned exceeds expenses paid. Net Exports - ANSWER️The difference between the monetary value of exports and imports. Imports - ANSWER️A commodity article or service brought in from abroad to sale. Trade Balance - ANSWER️The gap between exports and imports Double Counting - ANSWER️A potential mistake to avoid in measuring GDP, in which output is counted more than once as it travels through the stages of production Intermediate Goods - ANSWER️A product to produce a final good or finished product. Nominal GDP - ANSWER️The value of all goods taking price changes into account. Real GDP - ANSWER️The value of all goods produced in a given year. Depression - ANSWER️An especially lengthy and deep decline in output Peak - ANSWER️During the business cycle, the highest point of output before a recession begins Trough - ANSWER️During the business cycle, the lowest point of output in a recession, before a recovery begins Business Cycle - ANSWER️The economy's relatively short term movement in and out of recession. Standard of Living - ANSWER️All elements that affect people's happiness, whether people buy or sell these elements in the market. Employed - ANSWER️Those who are currently working for pay. Out of the Labor Force - ANSWER️Those who are not working and not looking for work—whether they want employment or not; also termed "not in the labor force" Underemployed - ANSWER️Employed in a job that offers fewer work hours than desired. Hidden Unemployment - ANSWER️People who are jobless but official unemployment figures do not include them. Discouraged Workers - ANSWER️Those who have stopped looking for employment due to the lack of suitable positions available Frictional Unemployment - ANSWER️Unemployment that occurs as workers move between jobs. Structural Unemployment - ANSWER️Unemployment that occurs because individuals lack skills valued by employers. Cyclical Unemployment - ANSWER️Unemployment that results when the overall demand for goods and services in an economy cannot support full employment. it occurs during periods of slow economic growth or during periods of economic contraction. Natural Rate of Unemployment - ANSWER️The unemployment rate that would exist in a growing and healthy economy from the combination of economic. social, and political factors that exist at a given time. Basket of Goods and Services - ANSWER️A fixed set of consumer products and services valued on an annual basis. Base Year - ANSWER️Starting point from which changes in prices are measured. Consumer Price Index - ANSWER️A measure of inflation that the U.S. Government statisticians calculate on the price level from a fixed basket of goods and services that represents the average consumers purchases. Substitution Bias - ANSWER️An inflation rate calculated using a fixed basket of goods over time tends to overstate the true rise in the cost of living because it does not take into account that the person can substitute away from goods whose prices rise considerably. Quality and New Goods Bias - ANSWER️Inflation calculated using a fixed basket of goods over time tends to overstate the true rise in cost of living because it does not account for improvements in the quality of existing goods or the invention of new goods Hyperinflation - ANSWER️Rapid excessive and out of control price increases in an economy.