If automatic stabilizers reduce the federal deficit by $60 billion for every 1 percent increase in real GDP growth, what will happen to the deficit balance if the economy's growth changes from 3 percent to -1 percent? Using this information, identify the change in the GDP growth rate and calculate the resulting change in the deficit balance. Instructions: Enter your responses as a whole number. For Part a. if you are entering a negative number be sure to include a negative sign (-) in front of that number. For Part b. enter your response as a positive value. a. Change in GDP growth rate b. Change in deficit balance The deficit will [[Click to select) by $ billion.
If automatic stabilizers reduce the federal deficit by $60 billion for every 1 percent increase in real GDP growth, what will happen to the deficit balance if the economy's growth changes from 3 percent to -1 percent? Using this information, identify the change in the GDP growth rate and calculate the resulting change in the deficit balance. Instructions: Enter your responses as a whole number. For Part a. if you are entering a negative number be sure to include a negative sign (-) in front of that number. For Part b. enter your response as a positive value. a. Change in GDP growth rate b. Change in deficit balance The deficit will [[Click to select) by $ billion.
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 7SQP
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Transcribed Image Text:Problem 17-05 algo
If automatic stabilizers reduce the federal deficit by $60 billion for every 1 percent increase in real GDP growth, what will happen to the
deficit balance if the economy's growth changes from 3 percent to -1 percent?
Using this information, identify the change in the GDP growth rate and calculate the resulting change in the deficit balance.
Instructions: Enter your responses as a whole number. For Part a, if you are entering a negative number be sure to include a negative
sign (-) in front of that number. For Part b, enter your response as a positive value.
a. Change in GDP growth rate
b. Change in deficit balance
The deficit will [(Click to select) by $[
billion.
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