Suppose a country has a national debt of $5,000 billion, a GDP of $10,000 billion, and a budget deficit of $100 billion.
How much will its new national debt be?
Compute its debt-GDP ratio.
Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion. Compute its new level of national debt and its new debt-GDP ratio.
Explain your answers for all of these questions (one well composed paragraph for each question).