6822

Find the largest nominal deficit that the government can run without raising the debt–GDP ratio, under each of the following sets of assumptions:

a. Nominal GDP growth is 10% and outstanding nominal debt is 1000.

b. Real GDP is 5,000 and remains constant, nominal GDP is initially 10,000, inflation is 5%, and the debt-GDP ratio is 0.6.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now