Suppose that a country has no public debt in year 1 but experiences a budget deficit of $ 40 billion in year 2, a budget surplus of $ 10 billion in year 3, and a budget deficit of $ 2 billion in year 4. Instructions: Enter your answers as whole numbers. For the absolute size of its public debt, enter your answer as a positive number. A) What is the absolute size of its public debt in year 4? B). If its real GDP in year 4 is $ 104 billion, what is this country's public debt as a percentage of real GDP in year 4?
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $ 40 billion in year 2, a budget surplus of $ 10 billion in year 3, and a budget deficit of $ 2 billion in year 4. Instructions: Enter your answers as whole numbers. For the absolute size of its public debt, enter your answer as a positive number. A) What is the absolute size of its public debt in year 4? B). If its real GDP in year 4 is $ 104 billion, what is this country's public debt as a percentage of real GDP in year 4?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...
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Suppose that a country has no public debt in year 1 but experiences a budget deficit of $ 40 billion in year 2, a budget surplus of $ 10 billion in year 3, and a budget deficit of $ 2 billion in year 4.
Instructions: Enter your answers as whole numbers. For the absolute size of its public debt, enter your answer as a positive number.
A) What is the absolute size of its public debt in year 4?
B). If its real GDP in year 4 is $ 104 billion, what is this country's public debt as a percentage of real GDP in year 4?
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