If a $6 billion economy is growing at a real rate of 5 percent a year and there is no inflation, what must the government do to maintain a constant debt-to-GDP ratio? Run a surplus of $300 million Balance the budget Run a deficit of $300 million Run a deficit of $600 million

If a $6 billion economy is growing at a real rate of 5 percent a year and there is no inflation, what must the government do to maintain a constant debt-to-GDP ratio? Run a surplus of $300 million Balance the budget Run a deficit of $300 million Run a deficit of $600 million

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government

Section: Chapter Questions

Problem 3WNG

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If a $6 billion economy is growing at a real rate of 5 percent a year and there is no inflation, what must the government do to maintain a constant debt-to-GDP ratio?

Run a surplus of $300 million

Balance the budget

Run a deficit of $300 million

Run a deficit of $600 million

Multiple choice, which is correct?

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