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For the fictitious country of Yak, the nominal national debt was $75 billion in 1950 and $100 billion in 1990. The nominal GDP was $200
For the fictitious country of Yak, the nominal national debt was $75 billion in 1950 and $100 billion in 1990. The nominal GDP was $200 billion in 1950 and $400 billion in 1990. All amounts are nominal. How did the relative size of the national debt compared to the size of the economy change between 1950 and 1990? (careful, numbers have changed). c. It is impossible to answer without knowing the GDP Deflator index. a. The relative size of the debt increased between 1950 and 1990 in real terms. b. The relative size of the debt decreased between 1950 and 1990 in real terms
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