At the End of 2010, the Government Had a Debt

question 28

Multiple Choice

At the end of 2010, the government had a debt of about $9.4 trillion. If during 2011 real GDP were to rise 3% and inflation was 2%, what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $94 billion
• B)about $470 billion
• C)about $540 billion
• D)None of the above are correct.

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Definitions:

Writ of Certiorari

A court order requesting the lower court to deliver its record in a case so that the higher court may review it.

Building Permit

Official authorization issued by a local government or regulatory authority to construct, alter, or demolish a building or structure.

Engineering Department

A division within an organization or institution that focuses on applying scientific principles to design, develop, and maintain structures, machines, or systems.

City Hall

The chief administrative building of a municipal government, where official business is conducted and public services are managed.