You Are Given the Following Budget Data for a Country

question 54

Short Answer

You are given the following budget data for a country that has both a central government and local governments:
Central purchases of goods500
Local purchases of goods250
Central transfer payments200
Local transfer payments100
Grants in aid (central to local)150
Central tax receipts800
Local tax receipts150
Interest received from private sector by central government25
Interest received from private sector by local governments10
Total central government debt1500
Total local government debt0
Central government debt held by local governments300
Nominal interest rate10%
a.How much is the deficit for the central government,the local government,and the total of the central and local governments?
b.How much is the primary deficit for the central government,the local government,and the total of the central and local governments?

---

Definitions:

Servomotors

Specialized motors equipped with a feedback mechanism for precise control of angular or linear position, speed, and acceleration.

Permanent Magnet Motors

Electric motors that utilize permanent magnets to generate the magnetic field within the motor, rather than an electrical coil.

Field-wound Motors

Electric motors where the magnetic field is generated by winding wire around a core to create electromagnets, typically adjustable for speed control.

Efficiency

The ratio of useful output of a system to its total input, often expressed as a percentage, indicating how well the system converts input energy into output work or desired form of energy.