Year 1 2 Government Purchases 304 459 Government Real GDP 5,131 5,405 Taxes 257 263 Suppose there is no public debt before Year 1 and that net transfers are equal to zero. What is the public debt as a percentage of GDP in Year 2? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Year 1 2 Government Purchases 304 459 Government Real GDP 5,131 5,405 Taxes 257 263 Suppose there is no public debt before Year 1 and that net transfers are equal to zero. What is the public debt as a percentage of GDP in Year 2? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Chapter12: Federal Budgets And Public Policy
Section: Chapter Questions
Problem 3.6P
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