Answered: Based on the forecasts in the following…

Based on the forecasts in the following table, what is the country's budget balance expected to be in year 3? don't forget to include a negative sign (with no spaces in your answer).

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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Question

The Department of Finance has developed forecasts for a country's real GDP, debt and budget balance for 5 years. Assume that
there are no debt charges (interest paid on debt)
Based on the forecasts in the following table, what is the country's budget balance expected to be in year 3? If a budget deficit,
don't forget to include a negative sign (with no spaces in your answer).
Year Budget Surplus Budget Deficit Debt Real GDP Debt as % of Real GDP
1
205 700
14
725
3
323 730
4
8
$Million
Enter numeric value
2.

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