At the End of 2010, the Government Had a Debt

question 224

Multiple Choice

At the end of 2010, the government had a debt of about $9.4 trillion. If during 2011 real GDP were to rise 3.2% and inflation were 1.6%, what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $150.4 billion
• B)about $188.0 billion
• C)about $451.2 billion
• D)about $481.3 billion

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Definitions:

Union Membership

Refers to individuals who are part of a labor union, an organization that represents workers' interests in negotiations with employers.

Union Coverage Rates

The percentage of employees who are members of a union or covered by a collective bargaining agreement.

Organizational Decision Making

The process by which decisions are made in an organization, which involves identifying and choosing alternatives based on values and preferences of the decision-maker.

Labor Relations Strategy

A plan devised by organizations to manage interactions with employees and their representatives in a way that advances the company's objectives.