Consider the following data: 2010 2011 G 13.0 13.2 TR 8.3 8.4 INT T Y 0.4 20.8 89.2 0.4 21.1 93.3 In the table, G is government purchases, TR is transfers, INT is net interest payments, T is tax revenues, and Y is nominal GDP. The numbers are in billions of dollars. By how much did the government debt change between 2011 and 2010? (Please provide your answer in billions of dollars, i.e., if your answer is 1.57 billion dollars, then type in "1.57"; if the change is negative, type "-1.57")

Consider the following data: 2010 2011 G 13.0 13.2 TR 8.3 8.4 INT T Y 0.4 20.8 89.2 0.4 21.1 93.3 In the table, G is government purchases, TR is transfers, INT is net interest payments, T is tax revenues, and Y is nominal GDP. The numbers are in billions of dollars. By how much did the government debt change between 2011 and 2010? (Please provide your answer in billions of dollars, i.e., if your answer is 1.57 billion dollars, then type in "1.57"; if the change is negative, type "-1.57")

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 2P

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Similar questions

A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of 400 million. In year two, the government runs a deficit of 1 billion. In year three, the government runs a surplus of 200 million. What is the total debt of the government at the end of year three?
Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in response to each of the situations below and sketch a diagram using aggregate demand and aggregate supply curves to illustrate your answer: A recession. A stock market collapse that hurts consumer and business confidence. Extremely rapid growth of exports. Rising inflation. A rise in the natural rate of unemployment. A rise in oil prices.
2. Calculating the debt to GDP ratio Suppose the following statistics characterize the financial health of the hypothetical economy Splurgium at the end of 2017: • Gross domestic product (GDP) is equal to $150 billion. • The national debt is equal to $225 billion. • The government has a budget deficit of $9 billion. • The debt ceiling in Splurgium is set at $248 billion. The following calculations help you see how the ratio of debt to GDP changes from one year to the next. Complete the first row of the following table by computing the ratio of national debt to GDP. Suppose that nominal GDP remains at $150 billion in 2018, and again the government runs a budget deficit of $9 billion. For simplicity, assume the interest rate on the national debt is 0%, and no payments are being made to reduce the debt.
Suppose that in 2016 the federal government spent $730 billion and collected $480 billion in taxes while in 2017, government spending fell to $680 billion and government revenue increased to $780 billion. If the government debt was $5 trillion at the beginning of 2016, what will it be at the end of 2017?