Answer and Explanation:
a. The computation is shown below;
As we know that
Y/G = 1 ÷ (1-MPC)
Here
Y = $300 billion,
MPC = 0.75
So,
300 ÷ G = 1 ÷ 0.25
G = $75
So the government should rise the spending by $75 in order to close out the recessionary gap
So, the government should increase the spending by $30 to close the recessionary gap.
The economic term for the practice of assigning small parts of a complicated job to individual workers who specialize in doing there just smart part is called spe<span>cialization</span><span>. Specialization is achieved when the assigned personnel is master of his art and the resources are focused on the particular field. This leads to an efficiency called allocative efficiency.</span>
You will need a law degree
<span>The journal entry to record the initial write-off includes is allowance for doubtful accounts. Allowance for doubtful accounts is a contra account to accounts receivable, and therefore has debit balance. It also needs to be diminished because you already used the bad debt when you make the allowance.</span>
