Suppose That at the Start of Fiscal Year 2013 the Government

question 39

Multiple Choice

Suppose that at the start of fiscal year 2013 the government had a debt of $6250 billion.Suppose that during the same fiscal year,real GDP grew by about 4 percent and inflation was about 2 percent.What is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $122 billion
• B)about $184 billion
• C)about $245 billion
• D)about $375 billion

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Definitions:

Reorientation

The process of changing one's focus, direction, or commitments towards new goals or principles.

Nadler-Tushman Model

A framework used for diagnosing organizational behavior and performance, focusing on the alignment between strategy, structure, and processes.

Least Risky

Refers to the option or decision that poses the lowest level of risk or danger.

Constructive Direction

A guidance method that aims to improve performance by providing positive feedback and clear instructions.