Answer:
Economist A
Government spending multiplier $4billion
Tax multiplier $8billion
Economist B
Government spending multiplier $8billion
Tax multiplier $2billion
Explanation:
Computation for the amount the government would have to increase spending to close the output gap according to each economist's belief
ECONOMIST A
Government spending multiplier=16/4
Government spending multiplier=$4billion
Tax multiplier=16/2
Tax multiplier=$8billion
ECONOMIST B
Government spending multiplier=16/2
Government spending multiplier=$8billion
Tax multiplier=16/8
Tax multiplier=$2billion
Therefore the amount the government would have to increase spending to close the output gap according to each economist's belief are :
ECONOMIST A
Government spending multiplier=$4billion
Tax multiplier=$8billion
ECONOMIST B
Government spending multiplier=$8billion
Tax multiplier=$2billion
Answer:
b. $3,000
Explanation:
According to the above information, the following data are given
Credit sales = $100,000
Uncollectible percentage = 3%
So, after the adjustment by using allowance method, Bad debt expense can be calculated as;
Bad debt expense = Credit sales × Uncollectible percentage
= $100,000 × 3%
= $3,000
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