EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 28.B, Problem 4TY
To determine
The prevailing level of GDP.
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Write 4-5 sentences.
Text Problem 14-2
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Suppose that the Office of Management and Budget provides the accompanying estimates of federal budget receipts, federal budget spending, and GDP, all expressed in billions of dollars. Calculate the implied estimates of the federal budget deficit as a percentage of GDP for each year. (Enter each response as a percentage
rounded to one decimal place. Do not include a plus or minus sign.)
Federal
Budget Receipts
(2% growth)
$2,329.8
Federal
GDP
Deficit as a %
Budget Spending
(5% growth)
$2,682.6
Year
(3% growth)
$14,573.2
of GDP
2019
2020
2,376.4
2,816.7
15,010.4
%
2021
2,423.9
2,957.6
15.460.7
2022
2,472.4
3,105.4
15.924.5
COURSE: MACROECONOMICS - FISCAL BALANCE
The government of country X, faced with a fiscal deficit, proposes an increase in public spending (G) but which further increases the country's public debt. To justify this action the president argues that they are seeking to boost the economy which will increase the country's GDP allowing to collect significantly more money than initially spent, finally improving the situation of the fiscal coffers. Is this statement correct? Does the government have knowledge of economics?
Chapter 28 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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