Find the largest nominal deficit that the government can run without raising the debt-GDP ratio, under each

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Find the largest nominal deficit that the government can run without raising the debt-GDP ratio, under each of the following sets of assumptions:

a. Nominal GDP growth is $10 \%$ and outstanding nominal debt is 1000 .

b. Real GDP is 5000 and remains constant, nominal GDP is initially 10,000 , inflation is $5 \%$, and the debt-GDP ratio is 0.6 .

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Macroeconomics

ISBN: 9780137876037

11th Edition

Authors: Andrew B Abel

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Question Posted: Apr 02, 2024 07:00 AM

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Find the largest nominal deficit that the government can run without raising the debt-GDP ratio, under each

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Macroeconomics

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