QCEVault

Economic management — Question 58

Original QCE Vault practice · 5 marks

Q58 · Practice questionComplex familiar5 marks

QUESTION 58 (5 marks)

Public debt is $600 billion and nominal GDP is $2000 billion. One year later debt is $630 billion and nominal GDP is $2200 billion. Calculate the debt-to-GDP ratio in both years. Explain why its movement does not prove the debt burden is harmless.

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