In the graph shown, an upward shift in the WAS curve:
A)raises domestic consumption, because domestic producers will 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.

Question

In the graph shown, an upward shift in the WAS curve: 
A)raises domestic consumption, because domestic producers will 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.

Quizplus · Accepted Answer

The Answer of In the graph shown, an upward shift in the WAS curve: 
A)raises domestic consumption, because domestic producers will 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.

In the Graph Shown, an Upward Shift in the WAS