Here is some information about the budget balance of the Mexican government as well as the GDP of the country. Use it to answer questions 3 to 6. GDP (in constant milions of 2010 USD) 2013 2016 2007 2008 2009 2010 2011 2012 2014 2015 2017 GDP 1050443.8 1062456.5 1006297.7 1057801.3 1096548.6 1136488.4 1151877.5 1184180.1 1223115.8 1258715.2 1285375.8 Budget Balance in constant milions of 2010 USD) Data Table A 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Budget Balance - 1201 2.71 56158.73 -51503.51 - 38747.35 -39939.84 -15389.10 -32 302.57 -38935.74 -35599.36-26660.63 -27455.09 3. In which periods the government run into a deficit? 4. For each period. Calculate the total debt for the government in question. Assume: That surpluses are used into repaying the Debt Debt is calculated at the beginning of the year. Budget Balances are calculated at the end of the year. Debt in 2007 was 340343.79 2007 2008 2009 2010 2011 2012 DEBT (in constant millions of 2010 USD 340343.79 2013 2014 2015 2016 2017 5. Calculate the Debt as a percentage of GDP for the indicated period. 2007 2008 2009 2010 2011 2012 DEBT (as %of GDP) 2013 2014 2015 2016 2017 6. During recessions, governments usually have to run deficits to push the economy forward. In a hypothetical recession at the end of the period studied, is this government going to easily finance an unexpected deficit increase? Justify. Here is some information about the budget balance of the Mexican government as well as the GDP of the country. Use it to answer questions 3 to 6. GDP (in constant milions of 2010 USD) 2013 2016 2007 2008 2009 2010 2011 2012 2014 2015 2017 GDP 1050443.8 1062456.5 1006297.7 1057801.3 1096548.6 1136488.4 1151877.5 1184180.1 1223115.8 1258715.2 1285375.8 Budget Balance in constant milions of 2010 USD) Data Table A 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Budget Balance - 1201 2.71 56158.73 -51503.51 - 38747.35 -39939.84 -15389.10 -32 302.57 -38935.74 -35599.36-26660.63 -27455.09 3. In which periods the government run into a deficit? 4. For each period. Calculate the total debt for the government in question. Assume: That surpluses are used into repaying the Debt Debt is calculated at the beginning of the year. Budget Balances are calculated at the end of the year. Debt in 2007 was 340343.79 2007 2008 2009 2010 2011 2012 DEBT (in constant millions of 2010 USD 340343.79 2013 2014 2015 2016 2017 5. Calculate the Debt as a percentage of GDP for the indicated period. 2007 2008 2009 2010 2011 2012 DEBT (as %of GDP) 2013 2014 2015 2016 2017 6. During recessions, governments usually have to run deficits to push the economy forward. In a hypothetical recession at the end of the period studied, is this government going to easily finance an unexpected deficit increase? Justify
