At the End of 2012,the Government Had a Debt of About

question 20

Multiple Choice

At the end of 2012,the government had a debt of about $11.3 trillion.If during 2013 real GDP rose 2% and inflation was 2.2%,what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $226.0 billion
• B)about $248.6 billion
• C)about $474.6 billion
• D)about $561.8 billion

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Definitions:

Raw Material Costs

The expenses associated with acquiring the unprocessed materials required for the production of goods or services.

Demand Curve

A chart displaying how consumer demand for a product varies based on its price.

Consumer Income

The total amount of income available to an individual or household for spending, saving, and investing after taxes.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the quantity supplied by producers.