Calculate the primary deficit, Cost Accounting

Assume B, G and T are in real terms (and in billions of dollars).

Bt-1 = 1000      Gt= 220           Tt= 200            it = .15    πt = .10

a) Calculate the official measure of the deficit in year t.

b) Calculate the correct (i.e. inflation adjusted) measure of deficit in year t.

c) Calculate the primary deficit in year t.

d) Discuss what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.

e) To what extent does the official measure of the deficit overstate the correct measure?

f) Given the above information, what will happen to the level of debt between years t-1 and t? Explain


Posted Date: 3/5/2013 6:10:50 AM | Location : United States

Related Discussions:- Calculate the primary deficit, Assignment Help, Ask Question on Calculate the primary deficit, Get Answer, Expert's Help, Calculate the primary deficit Discussions

Write discussion on Calculate the primary deficit
Your posts are moderated
Related Questions
Given the below information, what are the values for COGS and ending inventory for each costing method below?   Number of Units Price per Unit

If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit?

a factory operates a small canteen but its annual operation has consistently shown a loss:

cite some example on how to to calculate variable cost

process costing new practices

Automotive Products  (AP)  designs, manufactures,  and  sells  automotive  parts.  It  has  3 main operating departments: design, engineering, and production.  1.Design  ñ  the

Describe the information about cost sheets? Ans) Cost sheet having of the direct and indirect expenses acquired in producing a given product and classifying the expenses acquire

Ed Mettway was concerned about his firm''s ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, esta

XYZ Company is a family-owned bicycle manufacturing company located in Stow, Ohio. Until recently,it had maintained slow but steady growth in producing and marketing its only prod