Exhibit 9-1 GDP and Consumption Data as Shown in Exhibit

question 41

Multiple Choice

Exhibit 9-1 GDP and consumption data As shown in Exhibit 9-1, if investment is $0.5 trillion, government spending is $1 trillion, and net exports are - $0.5 trillion, then equilibrium GDP is:

• A)$2 trillion.
• B)$3 trillion.
• C)$4 trillion.
• D)$5 trillion.
• E)$6 trillion.

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Definitions:

Uncollectible Accounts

Accounts receivable that a company does not expect to collect and thus writes off as a loss.

Direct Write-off Method

An accounting practice where uncollectable debts are written off against income at the time they are deemed non-collectable.

Allowance Method

An accounting technique that estimates uncollectible accounts receivable to record bad debts expense, reflecting more accurate accounts.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable which may not be collected.