You Are Given the Following Budget Data for a Country

question 73

Essay

You are given the following budget data for a country that has both a central government and local governments.

(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?

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Definitions:

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

Business Cycle

The natural rise and fall of economic growth over time, consisting of periods of expansion, peak, contraction, and trough.

Successive Peaks

Repeated achieving of higher levels or values in a given sequence, often used in the context of economic growth, stock market performance, or other measurements of success.

Contraction

A phase of the business cycle where there is a decline in national output and economic activity.