question archive The tables below show the spending and revenue for Littleland in 2010
The tables below show the spending and revenue for Littleland in 2010
Subject:EconomicsPrice:2.88 Bought3
The tables below show the spending and revenue for Littleland in 2010. Use the tables and other information below to answer the questions that follow.
| Spending Category | Value (millions) |
|---|---|
| Education | $320 M |
| Welfare and Social Security | $890 M |
| Healthcare | $270 M |
| Defense | $120 M |
| Payments on Debt | $170 M |
| Other | $240 M |
This payment covers total interest owing only.
| Revenue Category | Value (millions) |
|---|---|
| Income Tax | $800 M |
| Sales Tax | $270 M |
| Corporate Tax | $300 M |
| Social Insurance | $340 M |
GDP in 2010: $7.3 Billion
Total debt as of 2009: $3.5 Billion
What was little-lands deficit to GDP ratio in 2010?(give your answer to the nearest whole percentage point) _____%
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To calculate the deficit of GDP
Step 1: Calculate the Borrowing
Borrowing for country = Total Spending - Total Earning
= (320+890+270+120+170+240)-(800+270+300+340)
= 2010-1710 = 300 million { 0.3 billion}
Step 2: GDP deficit
Deficit = Deficit / GDP *100
= 0.3/7.3 *100 = 4.11%
GDP Deficit = 4.11% for the year
