In the Graph Shown, an Upward Shift in the WAS

question 19

Multiple Choice

In the graph shown, an upward shift in the WAS curve:

• A)Raises domestic consumption because domestic producers produce more.
• B)Lowers the trade deficit because domestic producers are more competitive.
• C)Lowers domestic production because domestic consumption has fallen.
• D)Raises globalized potential output because U.S.producers are less competitive.

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Definitions:

Market Value

The ongoing price for the transaction of assets or services within the marketplace.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.