Wgu - D089 - Principles Of Economics Exam Questions (521 Terms) With Verified Definitions Updated 2024

Short-run aggregate supply (SRAS) curve {Ans: Positive short-run relationship between the price level for output and real GDP, holding the prices of inputs fixed.}Principles of Economics #3 {Ans: Rational people think at the margin}Think at the margin {Ans: Thinking about what the next step or an additional action means for a person}What is the focus of a model? {Ans: To gain a better understanding of how things work, observe patterns, and predict the results.}How do marginal costs typically appear on a graph? {Ans: The are usually rising}How are federal interest rates determined? {Ans: By the interaction of money demand and money supply in the money market. Rates adjust to bring the market to an equilibrium at which the quantity of money demanded and the quantity of money supplied is balanced}What are natural resources? {Ans: Things found in nature that can be used to produce goods and services.}What does a contractionary policy, such as a sale of government securities by the Fed do? {Ans: Pushes interest rates up, investment down and the aggregate demand curve to the left.}For every factor of production (or input) what is there an associated factor of? {Ans: