Answer: $400
Explanation:
A bad debt expense will be recognized by a company when the company cannot collect its receivable due to the fact that a customer cannot pay back their debt and fulfill their obligation.
Therefore, the estimated bad debts will be computed below:
= ($25,000 × 2% - $100)
= $500 - $100
= $400
Then, the journal entry to record the estimated bad debt expense will be:
Debit: Bad debt expense A/c $400
Credit: Allowance for doubtful debts $400
Answer: The correct answer is "c. will not be good for the economy since the presence of frictional unemployment increases economic efficiency.".
Explanation: Eliminating all frictional unemployment <u>will not be good for the economy since the presence of frictional unemployment increases economic efficiency.</u>
Frictional unemployment is voluntary unemployment that lasts the time between one worker leaving one job and finding another. That is, the unemployed person decided to leave his job voluntarily, either to rest, study or to find another job. It is beneficial for the economy, since it results in a better allocation of resources. However, if the search takes too long and the mismatches are too frequent, the economy suffers, since some work is not carried out.
<span>agreement to modify an existing contract </span>
Answer: No.
Explanation: Consumption is not contentment because one can consume something without been satisfied of that either because it wasn't what was expected as in the taste.
Answer:
Part 1. Additional spending on national park facilities & A tax cut is the answer.
Part 2. Expansionary
Explanation:
The Natural level of real GDP is also associated with the natural rate of unemployment. When the real gdp < natural real gdp, the economy is said to be in a recession. Thus unemplyment rate is> natural rate of unemployment.
Reason is as follows:
A tax cut, depends if its permanent or not (to see the difference between short and long run effects). However, for this scenario, a tax cut should give consumers more disposable income, which would increase consumption, thus increasing total output. The opposit effect would happen for a tax increase. Hence a tax cut is a policy that could bring gdp near natural GDP.
A reduction in government purchases would lower G, which would lower Y too. so all else equal, a reduction in government purchases wouldn't help increase output, rather it may fall instead. So this is not a solution for bringing actual gdp near natural GDP.
Additional spending on national park facilities:- Will increase income of someone or the other and thus would create extra demand . Thus it would give some consumers more disposable income, which would help them increase C, thus would be increasing total output. So this is can be a solution for bringing actual gdp near natural GDP.
