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Scorpion4ik [409]
3 years ago
7

The public debt for the economy is

Business
1 answer:
Paraphin [41]3 years ago
4 0
The public debt is the amount of money that a government owes to outside debtors. Public debt allows governments to raise funds to grow their economy or pay for services. Politicians prefer to raise public debt rather than raise taxes. When public debt reaches 77% of GDP or higher, the debt begins to slow growth.
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However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

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