Question 3 (1 point)
Government Tax
Spending Revenues GDP
Year
$450 $425 $2,000
1
Year
500 450 3,000
2
Year
600 500 4,000
3
Year
640 620 5,000
4
Year
680 580 4,800
5
Year
600 620 5,000
6
The accompanying table gives budget information for a hypothetical economy.
Assume that all budget surpluses are used to pay down the public debt. If year 1 is
the first year of this nation's existence and year 4 is the present year, the public debt
as a percentage of GDP in year 4 is
7. 5 percent.
8. 39 percent.