Suppose that a country has no public debt in year 1 but experiences a budget def

Question

Suppose that a country has no public debt in year 1 but experiences a budget deficit of $30 billion in year 2, a budget deficit of $30 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5. What is the absolute size of its public debt in year 5? Instructions: Enter a value for the surplus or deficit as a whole number. Do not include a plus or minus sign. $ billion If its real GDP in year 5 is $104 billion, what is this countrys public debt as a percentage of real GDP in year 5? Instructions: Round your answer to two decimal places. percent

Explanation / Answer

30 +30-10+2= 52 billion

52/104 or 50%

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