please answer question 2. i have already answered question 1 and provided the answer. q1: Public debt is the sum of deficits and surpluses (negative deficits) over time. Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 1, a budget deficit of $20 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year What is the absolute size of its public debt in year 4? ans: Public debt = Sum of all deficits (deficit - surplus) = 40 + 20 + (-10) + 2=$52 billion q2: If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4? If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real
please answer question 2. i have already answered question 1 and provided the answer.
q1: Public debt is the sum of deficits and surpluses (negative deficits) over time. Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 1, a budget deficit of $20 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year What is the absolute size of its public debt in year 4? ans: Public debt = Sum of all deficits (deficit - surplus) = 40 + 20 + (-10) + 2=$52 billion
q2: If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4? If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4? Should fiscal policy be counter-cyclical?
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