Answered: (i) Explain the difference between the…

(i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one will be the biggest figure? Explain your reasoning.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 3SCQ: Is it possible for a nation to run budget deficits and still have its debt GDP ratio fall? Explain...

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(i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one will be the biggest figure? Explain your reasoning.

(ii) Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain your reasoning.

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