The Government of Canada runs a 40 billion deficit in a year that begins with 1,200 billion of debt outstanding; GDP is 3,100 billion. Fill the worksheet: the debt at year end in billion, and the debt-to-GDP ratio as a decimal (e.g. 0.3500).
The Government of Canada runs a 40 billion deficit in a year that begins with 1,200 billion of debt outstanding; GDP is 3,100 billion. Fill the worksheet: the debt at year end in billion, and the debt-to-GDP ratio as a decimal (e.g. 0.3500).
Answer
Debt after the year ($ B) → 1240 · Debt-to-GDP → 0.4
Cells - Debt after the year ($ B) · ±0.5 - Debt-to-GDP · ±0.0005 `=1200+40` = 1,240 — the deficit (a flow) adds to the debt (a stock). `=1240/3100` = 0.40. A $15 B surplus instead: 1,185 and 0.382.
OpenStax, Introduction to Business (CC BY 4.0) §1.5 — fiscal-tool shape only; Bigel, Introduction to Financial Analysis (CC BY 4.0) §13.2 — determinants list shape; every figure original