Given: Nominal deficit = Nominal primary deficit + Nominal interest payments Change in debt-GDP ratio = Deficit Nominal GDP Total debs xGrowth rate of nominal GDP) Nominal GDP From the given information, change in debt-GDP ratio is, N.P. deficit + NI. payments =ADebt-GDP Ratio= Nominal GDP Total Debt Nominal GDF XGrowth rate of nominal GDP) N.P. deficit Nominal GDP N.I. payments Total Deb xGrowth rate of nominal GDP) Nominal GDP Nominal GDP N.I. payments N.P. deficit + Nominal GDP Total Debt x Growth rate of nominal GDP) Nominal GDP Nominal GDP N.P. deficit Total Debt Nominal GDP Nominal GDP N.I. payments Nominal GDP Nominal GDP Total Debt Growth rate of nominal GDP)
Given: Nominal deficit = Nominal primary deficit + Nominal interest payments Change in debt-GDP ratio = Deficit Nominal GDP Total debs xGrowth rate of nominal GDP) Nominal GDP From the given information, change in debt-GDP ratio is, N.P. deficit + NI. payments =ADebt-GDP Ratio= Nominal GDP Total Debt Nominal GDF XGrowth rate of nominal GDP) N.P. deficit Nominal GDP N.I. payments Total Deb xGrowth rate of nominal GDP) Nominal GDP Nominal GDP N.I. payments N.P. deficit + Nominal GDP Total Debt x Growth rate of nominal GDP) Nominal GDP Nominal GDP N.P. deficit Total Debt Nominal GDP Nominal GDP N.I. payments Nominal GDP Nominal GDP Total Debt Growth rate of nominal GDP)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explanation of Solution
Problem 1RQ
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Problem 2RQ
Given:
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Problem 3RQ
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Nominal deficit = Nominal primary deficit + Nominal interest payments
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Problem 4RQ
Deficit
Change in debt-GDP ratio =
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Nominal GDP
Total debt
Problem 5RQ
XGrowth rate of nominal GDP)
Nominal GDP
Problem 6RQ
From the given information, change in debt-GDP ratio is,
N.P. deficit +N.I. payments
Problem 7RQ
=ADebt-GDP Ratio=
Nominal GDP
Total Debt
;XGrowth rate of nominal GDP)
Nominal GDP
N.P. deficit
N.I. payments
Total Debt
XGrowth rate of nominal GDP)
Nominal GDP
Nominal GDP
Nominal GDP
N.P. deficit
N.I. payments
Total Debt
x Growth rate of nominal GDP
Nominal GDP
Nominal GDP
Nominal GDP
Total Debt
N.P. deficit
+
Nominal GDP
Nominal GDP
N.I. payments
Nominal GDP
Growth rate of nominal GDP
Nominal GDP
Total Debt
N.P. deficit
Total Debt
N.I. payments
- Growth rate of nominal GDP
Nominal GDP
Nominal GDP
Total Debt
Thus, the final equation will be:
ADebt-GDP Ratio = N.P. deficit
Nominal GDP
Total Debt
Nominal GDP
N.I. payments
- Growth rate of nominal GDP
Total Debt
Economics Concept Introduction
Tntro d.1otion.
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