Fiscal Policy Discovering Data FRED The accompanying graph plots the relationship between the growth rate of real GDP per capita and the level of gross 7.5 5.0 government debt for five countries from 2008 through 2015. Economic growth is on the y-axis and gross government debt as a 2.5 0.0 percentage of GDP is on the x-axis. -2.5 -5.0 Constant GDP per capita for France (left), General government gross debt for France (bottom), 2008 2017 -7.5 50 60 -3.43941 (left) 83.035 (bottom) Sources: International Monetary Fund, World Bank positive d. Generally, when these countries have gross government debt in excess of 80% of GDP, economic growth is positive negative zero Percent Change from Year Ag

Fiscal Policy Discovering Data FRED The accompanying graph plots the relationship between the growth rate of real GDP per capita and the level of gross 7.5 5.0 government debt for five countries from 2008 through 2015. Economic growth is on the y-axis and gross government debt as a 2.5 0.0 percentage of GDP is on the x-axis. -2.5 -5.0 Constant GDP per capita for France (left), General government gross debt for France (bottom), 2008 2017 -7.5 50 60 -3.43941 (left) 83.035 (bottom) Sources: International Monetary Fund, World Bank positive d. Generally, when these countries have gross government debt in excess of 80% of GDP, economic growth is positive negative zero Percent Change from Year Ag

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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