Hello

I need help with part 2 please

Thank you

Fiscal Policy

1. A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of $400 million. In year two, the government runs a deficit of $1 billion. In year three, the government runs a surplus of $200 million. What is the total debt of the government at the end of year three?

2. Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in response to each of the situations below. Indicate which direction aggregate demand and /or aggregate supply shifts.:
   1. A recession.
   2. A stock market collapse that hurts consumer and business confidence.
   3. Extremely rapid growth of exports.
   4. Rising inflation.
   5. A rise in the natural rate of unemployment.
   6. A rise in oil prices.