6 8- Budget Surplus/Deficit (millions of dollars) 1 2 3 + +3 ¿ N A B 0 125 250 375 500 625 750 875 Bo B₁ Real GDP (millions of dollars) O a Consider the following data about government debt and deficit in a given year: ― real interest rate on government bonds = 2% - growth rate of real GDP = 2% - current debt-to-GDP ratio = 28% - primary budget deficit as a percentage of GDP = 6% Over this one-year period the debt-to-GDP ratio will have A. fallen by 6 percentage points. B. risen by 0.6 percentage points. C. remained unchanged. D. risen by 6 percentage points. E. fallen by 0.6 percentage points.

Jse the following information to answer the next 5 questions. Year 2008 2018 Nominal Debt 150 500 Nominal GDP 1,000 2,500 Price Level/GDP Deflator 150 200 Assuming that the interest rate on the debt is 5%, what is the annual interest payment on the debt in 2018? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 15 b -5 C 10 d 25

Incorrect Question 9 The ability of forests to reduce soil erosion is an example of what type of economic value? Ecosystem service value Intrinsic value O Nonuse value Contingent value Revealed value

2. Mang Oleh Kembang in Lembang has 10 major fields that are used to grow Mango. The productivity of each field is expressed as follows: Annual Yield, Hundreds of Kilograms Field 1 2000 Field 2 1800 Field 3 1750 Field 4 1625 Field 5 1500 Field 6 1450 Field 7 1375 Field 8 1225 Field 9 8500 Field 7250 10 Assume that each field is the same size and that the variable costs of farming are $74,600 per year per field. The variable costs cover labour and machinery time, which is rented. Tamima farm must decide each year how many fields to plant. a. In 2017, corn farmers received $5.15 per 100 KG. How many fields did Tamima plant? Explain. b. By 2020, the price of corn had fallen to $4.23 per 100 KG. How will this price decrease change Tamima's decision? How will it affect his demand for labour?