From the End of 2005 to the End of 2006,the

question 17

Multiple Choice

From the end of 2005 to the end of 2006,the United States ran a deficit of about $309 billion.The debt at the start of this period was about $4,592 billion.Which of the following combinations of inflation and real GDP growth would have allowed the government to run this deficit while keeping the ratio of real GDP to the debt about the same?

• A)about 3% inflation and about 2.2% real GDP growth
• B)about 3% inflation and about 3.2% real GDP growth
• C)about 3.4% inflation and about 3.3% real GDP growth
• D)about 3.4% inflation and about 4% real GDP growth

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Definitions:

Concrete Operations

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about physical objects and events.

Sensorimotor

Pertaining to the development phase where an infant's understanding of the world is based on sensory experiences and the motor actions they perform.

Preoperational

A developmental stage in Piaget's theory of cognitive development, roughly ages 2 to 7, characterized by symbolic thought and egocentrism, but a lack of logical operations.

Cognitive Development

The study of how thinking, problem-solving, and intelligence evolve as individuals grow, often focusing on childhood development.