The table below shows government spending data over eight years in Debtland. All figures are in billions

Question:

The table below shows government spending data over eight years in Debtland. All figures are in billions of dollars. The symbols used are as defined in the text.

image text in transcribed

a. Compute Debtland's budget deficit in each year and complete column 4 in the table. (Since we are computing the deficit, a negative number indicates a surplus.)

b. Compute Debtland's primary budget deficit in each year and complete column 5 in the table.

c. Suppose the initial stock of debt (in 200 9) was \(\$ 400 \) billion. Noting that the deficit in 201 0 adds to the existing stock of debt, what is the stock of debt by the end of 201 0?

d. Compute the stock of debt for each year and complete column 6 in the table.

e. Suppose you know that Debtland's debt-to-GDP ratio was the same in 201 7 as in 200 9. By what percentage did GDP grow between 200 9 and 201 7?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

Question Posted: