Assume That Aggregate Supply Meets Aggregate Demand in the Upward

question 66

Essay

Assume that aggregate supply meets aggregate demand in the upward sloping portion of the AS curve.For each of the following,graph the change in aggregate supply and/or aggregate demand,and state the effect on prices and output.
1. The demand for U.S.exports increases.
2. Taxes increase.
3. Businesses become less optimistic about the future.
4. The labor force increases.
5. Costs of production increase.

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Definitions:

Posting

The process of transferring journal entry amounts to the respective accounts in the general ledger.

Prepaid Rent

The amount paid for rent before it is due, recorded as an asset on the balance sheet and expensed over the period the payment covers.

Rent Revenue

The income earned from leasing out properties or assets to tenants under rental agreements.

Unearned Rent

Payment received for rent before the rental period has occurred, classified as a liability until earned.