The Accompanying Table Gives Budget Information for a Hypothetical Economy
Question 132
Question 132
Multiple Choice
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Government Spending $450500600640680600 Tax Revenues $425450500620580620 GDP $2,0003,0004,0005,0004,8005,000 The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. As a percentage of GDP, the
A) budget de?cit was 3.9 percent in year 4. B) budget surplus was less than 1 percent in year 6. C) public debt was 3 percent in year 6. D) public debt was 12.5 percent in year 1.
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