If the Deficit Is 0

question 81

Multiple Choice

If the deficit is 0.1 times GDP,the existing debt-GDP ratio is 0.5,and the growth rate of nominal GDP is 0.04,then the change in the debt-GDP ratio is

• A)+0.08
• B)+0.075.
• C)0)
• D)-0.075.

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Definitions:

Manufacturing Overhead Costs

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and salaries of non-direct labor.

Direct Labour Costs

Expenses associated with the wages of employees who are directly involved in the production of goods or services.

Nonmanufacturing Costs

Expenses not directly related to the production of goods, including sales, administration, and marketing costs.

Depreciation Factory Equipment

The systematic reduction in the recorded cost of factory equipment over its useful life, reflecting wear and tear or obsolescence.