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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

If a government runs a budget deficit of Chapter 30, Problem 52P, If a government runs a budget deficit of billion dollars each year for ten years, then a surplus of , example  1 billion dollars each year for ten years, then a surplus of Chapter 30, Problem 52P, If a government runs a budget deficit of billion dollars each year for ten years, then a surplus of , example  2 billion for five years, and then a balanced budget for another ten years, what is the government debt?

To determine

To write: about the debt of the government.

Explanation

Given that government runs budget deficit of $ 10 Billion per year for 10 consecutive years.

So, after 10 years total amount of debt is (10 x 10 Billion) = $ 100 Billion

Next five years, the same government runs surplus of $ 1 billion. So, in next five years, total surplus is (5 x $ 1 Billion) = $ 5 Billion

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