Suppose the economy is operating at the Zero Lower Bound for the nominal policy rate, the economy is operating at the potential output in period 't,' but there is a large government budget deficit. A newly elected government vows to cut spending and reduce the deficit in period 't+1,' period 't+2,' and subsequent periods. Use an IS-LM-PC diagram and words to answer the following questions. A) What is the effect of the policy on output in period t+1?
B) What is the effect of the policy on the change in inflation in period t+1?
C) If expected inflation depends on past inflation, when what happens to the real policy rate in period t+2? How will this affect output in period t+3?
D) How does the ZLB on nominal interest rates make fiscal consolidation more difficult?

When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting

Suppose that kenji, an economist from an am talk radio program, and lucia, an economist from a school of industrial relations, are arguing over health insurance. the following dialogue shows an excerpt from their debate: lucia: a popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. kenji: i think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese. lucia: i disagree. i think government funding of health insurance is useful to ensure basic fairness. the disagreement between these economists is most likely due to . despite their differences, with which proposition are two economists chosen at random most likely to agree? lawyers make up an excessive percentage of elected officials. minimum wage laws do more to harm low-skilled workers than them. tariffs and import quotas generally reduce economic welfare.

For 2018, rahal's auto parts estimates bad debt expense at 1% of credit sales. the company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at december 31, 2017. during 2018, rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off.rahal's accounts receivable at december 31, 2018, are: