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Question: The debt-GDP ratio: This exercise allows you to use the government budget constraint to study how the debt-GDP ratio changes over time. Suppose a government has an initial debt of $5 trillion, and the nominal interest rate is 5%.
(a) If the government keeps its primary budget in balance, what is the growth rate of its debt? Why?
(b) If the government keeps its total budget in balance, what is the growth rate of its debt? Why?
(c) Suppose the country's GDP grows at 4% per year. What happens to the debt-GDP ratio over time in the two cases of parts (a) and (b)?
(d) Are the situations in part (c) sustainable? Why or why not?
Explain the price elasticity of supply for the following cases:?
Organize Forum Threads on page and apply settings to several or all threads. Threads are listed in a tabular format. The Threads can be sorted by clicking the column title or the caret at the top of each column.
7. Given the Adam Duritz utility function between CD's (C) and hard candy (H) is , a. Sketch Adam's indifference curve for U=5, U=10 and U=20.b. Suppose Adam has $100 to spend and that CDs cost $2.50 and hard candy cost $10. Draw Adam's budget constr..
the success of mis function in any organization will depend upon the relative position of the chief of the mis function
just need two or three paragraphs concisely discussing...the profit maximizing level of output is the ultimate goal of
Calculate the correlations between life expectancy and the two measures of GDP per person
(a) Compute the mean log NO2 concentration for treated monitors before and after the nearest toll plan was converted to E-ZPass. Is there a statistically significant change in NO2 levels? Repeat for monitors that ware from 4-10 km from the nearest to..
"Suppose Y = $200, C = $140, G = $25, x-m = -5, and T = $25. What is Sp? What is I?" Here is the answer:Yd = Y - T | C + Sp = Y - T | Sp = Y - T - C,Sp = Y - C - T = 200 - 25 - 140 = $35,I = Sp + (T - G) + (x-m) = $35 I = $35 + 0 - 5 = $30
Thomas McCraw, at the time a professor at the Harvard Business School, wrote: "Throughout American history, entrepreneurs have tried, sometimes desperately, to create big businesses out of naturally small-scale operations. It has not worked." What..
Consider the latch of Fig. 16.1 with the two inverters identical and each characterized by VOL = 0 V, VOH = 5 V, VIL = 2 V, and VIH = 3 V. Let the transfer characteristic of each inverter be approximated by three straight-line segments. Sketch the..
Write your individual answers to the questions listed above together using a minimum of 300 words in essay format in APA style. use APA template in Doc Sharing, using correct economic terms covered in the discussions.
why dont economists use the same cost data as accountant use? why are costs important in economics? how do firms
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