# Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget surplus of$ 10 billion in year 3, and a budget deficit of $2 billion in year 4. Instructions: Enter your answers as whole numbers. For the absolute size of its public debt, enter your answer as a positive number. A) What is the absolute size of its public debt in year 4? B). If its real GDP in year 4 is$ 104 billion, what is this country's public debt as a percentage of real GDP in year 4?

Question

Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget surplus of$ 10 billion in year 3, and a budget deficit of $2 billion in year 4. Instructions: Enter your answers as whole numbers. For the absolute size of its public debt, enter your answer as a positive number. A) What is the absolute size of its public debt in year 4? B). If its real GDP in year 4 is$ 104 billion, what is this country's public debt as a percentage of real GDP in year 4?

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