-The Table Above Gives the Aggregate Demand and Aggregate Supply

question 92

Multiple Choice

-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short-run macroeconomic equilibrium. In the long run, if aggregate demand does not change, then Lotus Land will return to full employment as

• A) the money wage rate rises.
• B) the money wage rate falls.
• C) businesses cut their imports.
• D) the government cuts taxes.

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure they are in agreement.

Deposit in Transit

Funds that have been deposited by a company in its bank account but have not yet been recorded by the bank, leading to a timing difference in the company's accounting records.

NSF Notation

A notation made by banks on a bounced check indicating "non-sufficient funds," meaning the account does not have enough money to cover the check.

Service Charge

Fees charged to customers for specific services or as penalties for not meeting certain criteria.