All categories

2 years ago

Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. What is the real deficit or surplus

Business

1 answer:

algol132 years ago

4 0

Answer:

Real deficit is -$100 billion.

Explanation:

Since we have a nominal deficit in the question, what we are to calculate is the real deficit.

The real deficit can be described as the actual or nominal deficit that has been adjusted for the effect of inflation on the debt. Therefore, the real deficit can be calculated using the following formula:

Real deficit = Nominal deficit - (Debt * Inflation rate) ................. (1)

From the question, we have:

Inflation rate = 20%

Debt = $2 trillion = $2,000,000,000,000

Nominal deficit = $300 billion = $300,000,000,000

Substituting the values into equation (1), we have:

Real deficit = $300,000,000,000 - ($2,000,000,000,000 * 20%)

Real deficit = $300,000,000,000 - $400,000,000,000 = -$100,000,000,000 = -$100 billion

Therefore, real deficit is -$100 billion.

You might be interested in

What strategy was avon pursuing until the mid-2000s? what were the advantages of this strategy? what were the disadvantages?

LenaWriter [7]

Avon used Direct Sales Model Strategy until the mid-2000s. It is a method wherein the business's own employees are in direct contact with buyers as they sell their products.

The advantages of direct sales model are:
1) strong customer relations
2) coordination with other effective business strategies
3) price and cost control
4) access to more customers

The disadvantages of direct sales model are:
1) more expensive compared to other marketing strategy
2) time consuming during sales calls or talks.
3) can be inconvenient or intrusive to clients or consumers.

8 0

2 years ago

Managerial economist estimates the price-quantity relationship for Textile Company to be p= 40-4q a. At what output rate demand

Sindrei [870]

Answer:

So unit elastic at q = 5

inelastic above 5

and elastic below 5

Explanation:

The elasticity is determianted by the marginal revenue.

Our first goal is to find the marginal revenue function

p = 40 - 4q

total revenue(TR) = quantity times price

q x (40 - 4q) = -4q^2 +40q

marginal revenue TR(q)/d(q) = -8q + 40

Now, with this fuction the economic analisys states that a demand is unit elastic when marginal revenue is zero.

It will be inelastic below zero and elastic above zero

MR will be zero when q = 5

-8(5) + 40 = 0

As quantity increases the demand will be inelastic

while

3 0

2 years ago

Employees with _____, in which work output is exchanged back and forth among individuals, should be organized into teams to faci

Andrew [12]

Answer: Reciprocal Interdependence.

Explanation:

Reciprocal Interdependence is a working situation in which the output of a department of an organization forms the direct input used by another department in the same organization.

In organizations functioning with reciprocal interdependence, the various departments have to form strong interwoven relationship to increase effectiveness and productivity.

3 0

2 years ago

1.The percentage of the labor force that belongs to a union is known as the

Helen [10]

1) The percentage of the labor force that belongs to a union is known as the UNIONIZED PERCENTAGE RATIO.

2) The equilibrium wage rate is determined by the point of intersection of labor market supply and labor market demand. Equilibrium wage is the wage where the company agrees to pay and the worker agrees as the value of his work.

3) The effect of union exclusion of nonunion workers is to lower the wages of nonunion workers.

4) A market with one buyer and one seller is a bilateral monopoly. Monopoly is a market with only one seller. Monopsony is a market with only one buyer.

4 0

3 years ago

Which of the following are true if you pay only the minimum amount each month towards your credit card bill?

Stels [109]

You will have a higher interest and will be in debt for longer

6 0

3 years ago