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In 2010 Greece was in a situation with approximately the following economic statistics: Real Interest Rates: 0.10 Real GDP growth Rate: 0.04 Unemployment: 26.5% Inflation
- In 2010 Greece was in a situation with approximately the following economic statistics:
Real Interest Rates: 0.10
Real GDP growth Rate: 0.04
Unemployment: 26.5%
Inflation Rate: -1.7%
Government Debt Ratio: 1.80
Government Deficit Ratio: 0.04
GDP per capita: $26,000
Population: 11.1 million
- Write the equation for debt ratio dynamics.
- Graphically demonstrate that Greece's Debt Ratio is stable or unstable.
- How much of a primary surplus would have Greece needed to run to achieve a stable debt ratio? (What would d need to be to obtain
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