Hello, I'm trying to figure out how this person got this answer. I get stuck at the line after the fourth equal sign. Could you please explain in detail how this was simplified? Thank you. = bartlebySearch for textbooks, step-by-step explanations to homework question...Ask an ExpertE Macroeconomics< Chapter 15, Problem 3AP >Ask an ExpertExplanation of SolutionProblem 1RQ30 of 30 questions left this cycleRenews on May 27, 2021Problem 2RQGiven:*Response times may vary by subjectProblem 3RQand question complexity. MedianNominal deficit = Nominal primary deficit + Nominal interest paymentsresponse time is 34 minutes for paidsubscribers and may be longer forProblem 4RQDeficitChange in debt-GDP ratio =promotional offers.Nominal GDPTotal debtProblem 5RQXGrowth rate of nominal GDP)Nominal GDPProblem 6RQFrom the given information, change in debt-GDP ratio is,N.P. deficit +N.I. paymentsProblem 7RQ=ADebt-GDP Ratio=Nominal GDPTotal Debt;XGrowth rate of nominal GDP)Nominal GDPN.P. deficitN.I. paymentsTotal DebtXGrowth rate of nominal GDP)Nominal GDPNominal GDPNominal GDPN.P. deficitN.I. paymentsTotal Debtx Growth rate of nominal GDPNominal GDPNominal GDPNominal GDPTotal DebtN.P. deficit+Nominal GDPNominal GDPN.I. paymentsNominal GDPGrowth rate of nominal GDPNominal GDPTotal DebtN.P. deficitTotal DebtN.I. payments- Growth rate of nominal GDPNominal GDPNominal GDPTotal DebtThus, the final equation will be:ADebt-GDP Ratio = N.P. deficitNominal GDPTotal DebtNominal GDPN.I. payments- Growth rate of nominal GDPTotal DebtEconomics Concept IntroductionTntro d.1otion.

It is asked to explain how the above formula is derived. It is explained in the next step.

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)