Suppose a country's nominal GDP is $600 billion, government expenditures less debt service are $155 billion, and

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Question:

Suppose a country's nominal GDP is $600 billion, government expenditures less debt service are $155 billion, and revenues are $170 billion. The nominal debt is $360 billion. Inflation is 5 percent and interest rates are 6 percent.

Instructions: Enter your answers rounded to the decimal place. To indicate a deficit, be sure to use a negative sign (-) before the value.

to. Calculate debt service payments.

billion dollars

b. Calculate the nominal deficit or surplus. Add a negative sign before the value to indicate a deficit.

billion dollars

C. Calculate the real deficit or surplus, putting the negative sign before the value if it is a deficit.

billion dollars