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: In part a, enter your answer as a whole number. For the absolute size of the public debt, enter your answer as a positive number. In part b, round your answer to 2 decimal places. a. What is the absolute size of its public debt in year 4? 24 billion 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? percent

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: In part a, enter your answer as a whole number. For the absolute size of the public debt, enter your answer as a positive number. In part b, round your answer to 2 decimal places. a. What is the absolute size of its public debt in year 4? 24 billion 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? percent

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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