Sunday

November 23, 2014

November 23, 2014

Posted by **Jenny** on Monday, April 14, 2008 at 11:24pm.

When the government runs a deficit, it spends more than it collects in tax revenue. To make up the difference, it borrows. So if it runs a deficit of 7 trillion ducats, debt increases by 7 trillion ducats. So debt next year is 147 trillion ducats. Suppose that there is no growth in real GDP and inflation is equal to -2% per year. (Negative inflation is the same as deflation.) Measured in ducats, what will GDP be equal to next year?

---What formula do i use to solve this?

V=GDP/m?

- Macroeconomics -
**economyst**, Tuesday, April 15, 2008 at 9:48amdo you have a question?

**Answer this Question**

**Related Questions**

economics - I have a couple of questions, thanks so much. If a country were to ...

macroeconomics - 23. The next four questions refer to the following price and ...

macroeconomics - b. Now suppose that the gross national debt initially is equal ...

Macroeconomics - suppose that this year's money supply is $500b, nominal gdp is...

Macroeconomics - If GDP increases by 5 percent in the same that the deficit is ...

Macroeconomics - Suppose that velocity is constant. The economy's output of ...

Economics - Assume that the gross national debt initially is equal to $3 ...

macroeconomics - Year - 2000 Nominal GDP: 9,817 Real GDP: ___________ GDP ...

Macroeconomics - How do you calculate the nominal GDP and the real GDP of ...

MATH 12 - Canada's national debt fluctuates. It is affected by financial markets...