Let D Be the Percentage Change in Government Debt,g the Rate

question 60

Essay

Let d be the percentage change in government debt,g the rate of growth in real GDP,RGDP the real GDP,NGDP the nominal GDP,P the price level,and p the inflation rate.Let G[X] denote the growth rate in variable X,which is the same thing as the percentage change in X;thus,G[X] = (X2 - X1)/X1 ×100% for small changes in X.Here are two properties of the growth rate operator G: (i)G[X×Y] = G[X] + G[Y],and (ii)G[X/Y] = G[X] - G[Y].
a.Show that the growth rate in NGDP is equal to g + p, where g is the real GDP growth rate and p is the inflation rate.
b.Show that d is equal to (Deficit/Debt) × 100%.
c.Show that the percentage change in the Debt/NGDP ratio is equal to d - (g + p).
d.Show that the condition for the Debt to NGDP ratio not to increase is d = g + p.

Know how to construct a buffer in a negative message for smoother communication.

Understand how to provide detailed reasons for bad news in a manner that is clear yet considerate.

Recognize the importance of maintaining a positive relationship with the recipient despite delivering bad news.

Know the guidelines for making a clear statement of bad news when organizing a negative message using the indirect method.

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Definitions:

Incorporators

Individuals involved in forming a corporation, who sign the articles of incorporation and may act as temporary directors until a board is elected.

Perfunctory

Carried out with a minimum of effort or reflection.

Short-lived

Referring to something that lasts for a brief period of time.

RMBCA

The Revised Model Business Corporation Act, which serves as a guide for states in drafting their corporation statutes.