Consider the following economy below in 2010 and 2020. What is the debt-to-GDP ratio in 2020? Year 2010 2020 Nominal Debt 1000 2500 Nominal GDP 4000 8000 Price Level/GDP Deflator 100 150 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.17 0.25 0.31
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- Calculating the debt to GDP ratio Suppose the following statistics characterize the financial health of the hypothetical economy Debtenburg at the end of 2017: • Gross domestic product (GDP) is equal to $180 billion. • The national debt is equal to $234 billion. • The government has a budget deficit of $9 billion. • The debt ceiling in Debtenburg is set at $253 billion. The following calculations help you see how the ratio of debt to GDP changes from one year to the next. Complete the first row of the following table by computing the ratio of national debt to GDP. Suppose that nominal GDP remains at $180 billion in 2018, and again the government runs a budget deficit of $9 billion. For simplicity, assume the interest rate on the national debt is 0%, and no payments are being made to reduce the debt. Calculate national debt and the debt-to-GDP ratio in 2018. Enter these values in the second row of the following table. Year GDP National Debt Ratio…What is the current GDP to national debt ratio in the USA? A.Over 100 % B. 75 - 85 % C. 85 - 100 % D. 60-75 %For each of the following figures, indicate what changes in fiscal policy would result in a shift from AEo to AE1.
- What role taxes policy plays in determining the GDP or national income in an economy? Explain with numerical examples?From 2008 to 2012, in the aftermath of the financialcrisis, the ratio of government debt to GDP in theUnited Statesa. increased markedly.b. decreased markedly.c. was stable at a historically high level.d. was stable at a historically low level.What are problems that governments may encounter in enacting and applying fiscal policy? Explain the effectiveness of the recent U.S. fiscal policy. (Please note that this is a an old source however it is the source my teacher wants me to use. https://www.clevelandfed.org/newsroom-and-events/publications/economic-trends/2015-economic-trends/et-20150714-us-fiscal-policy-recent-trends-in-historical-context.aspx )
- How to calculate the level of GDP base on the MPC & MPS? Historical durations of recessions? The effect of foreign trade on the U.S. economy? Importance of who holds the public debt?Establish and explain the Debt-GDP ratio(Net Public Debt) What’s the level of net public debt (for federal, state, and local governments) relative to U.S. GDP? How does the U.S. measure compare with that of other major economies?
- The table below shows hypothectical figures of revenue and spending for the Canadian government. For simplicity, assume that all of the spending grants to other levels of government were spent in Canada on goods and services. Federal Government's Budget Plan for Fiscal Year ($billion) REVENUES OUTLAYS Personal income taxes $100 Transfers to persons $46 Corporate income taxes 34 Spending grants to other levels of government 38 Other income taxes 7 Public debt charges 35 GST and excise taxes 47 Direct program spending 95 EI premiums 14 Total Outlays 214 Other revenues 18 Projected Budget Plan Surplus 6 Total Revenues 220 a. The projected NTR in this budget plan is $ billion. b. The value of NTR less government spending on goods and services (G) is $ billion. Round your answers to 1 decimal place. c. The percentage of total revenue made up by personal income taxes is %. d. The percentage of total revenue…What would happen to the level output income if the government increase tax collections on personal income by 100 billion and spent the entire mouth. Assume MPS equals .20.Please solve with reference to the diagram, calculate the equilibrium level of income after the introduction of government spending and proportional income tax. Show all calculation steps