Grabbe enterprises uses the allowance method to account for uncollectible receivables. when an uncollectible account is written off, the bad debt expense account is debited no entry is required because bad debt expense is estimated at the end of the accounting period the write off has no effect on net income the allowance for bad debts account is credited

Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?