14. In 2008, the policy makers of the economy of Eastlandia projected the debt– GDP ratio and the ratio of the budget deficit to GDP for the economy for the next 10 years under different scenarios for growth in the government’s deficit. Real GDP is currently $1,000 billion per year and is expected to grow by 3% per year, the public debt is $300 billion at the beginning of the year, and the deficit is $30 billion in 2008.

Budget Real Budget Debt deficit GDP Debt deficit (percent (percent

(billions (billions (billions of of of of of real real Year dollars) dollars) dollars) GDP) GDP)

2008 $1,000 $300 $30 2009 $1,030 2010 $1,061 2011 $1,093 2012 $1,126 2013 $1,159 2014 $1,194 2015 $1,230 2016 $1,267 2017 $1,305 2018 $1,344

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?