Suppose that the annual federal deficit is $350 billion. gross domestic product 'gdp', a measure of the size of the economy is $

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Suppose that the annual federal deficit is $350 billion. gross domestic product 'gdp', a measure of the size of the economy is $

14.5 trillion ($14,500 billion). calculate the ratio between the deficit and gdp as a percentage rounded to one decimal place:

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1 answer:

Luda [366] · Answer 1 · 2022-04-27T18:55:48+03:00

What we are looking for is the Debt-GDP ratio in percentage. In economics, the debt-to-GDP ratio is the ratio in the middle of a country's government debt (a cumulative amount) and its gross domestic product (GDP) that is measured in years.

Solution: This ratio is calculated as (350 / 14500) x 100 = 0.02414 x 100 = 2.4 (rounded to one decimal place). The deficit is 2.4% of GDP.