Ask Question
11 July, 01:19

Calculate the real deficit or surplus in the following cases: a. Inflation is 11 percent. Debt is $1 trillion. Nominal deficit is $90 billion. Instructions: Round your answer to the nearest whole dollar amount. $ billion. b. Inflation is 11 percent. Debt is $1 trillion. Nominal deficit is $150 billion. Instructions: Round your answer to the nearest whole dollar amount. $ billion. c. Inflation is - 5 percent. (Price levels are falling.) Debt is $300 billion. Nominal deficit is $40 billion. Instructions: Round your answer to the nearest whole dollar amount. $ billion. d. Inflation is 1 percent. Debt is $3 trillion. Nominal surplus is $50 billion. Instructions: Round your answer to the nearest whole dollar amount. $ billion.

+1
Answers (1)
  1. 11 July, 02:38
    0
    The computation is shown below:

    As we know that

    Real Deficit = Nominal Deficit - (Inflation * Total Debt)

    a.

    Real deficit = $90 - (11% * $1,000)

    = - $20 billion surplus

    b.

    Real deficit = $150 - (11% * $1,000)

    = $40 billion deficit

    c.

    Real deficit = $40 - (-5% * $300)

    = $55 billion deficit

    d.

    Real deficit = - $50 - (1% * $3,000)

    = - $80 billion surplus
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Calculate the real deficit or surplus in the following cases: a. Inflation is 11 percent. Debt is $1 trillion. Nominal deficit is $90 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers