Question
Japan, Germany, Sweden, and France all went through national budget difficulties in recent years. Use the data below to answer questions regarding the sovereign debts
Japan, Germany, Sweden, and France all went through national budget difficulties in recent years. Use the data below to answer questions regarding the sovereign debts of these nationals (All data comes from the OECD and is in billions of current US dollars.).
Japan's debt in 2000 was $138, while its GDP was $127. Japan's debt in 2010 was $488 while its GDP was $308.
Germany's debt in 2000 was $34 while its GDP was $98. Germany's debt in 2010 was $104 while its GDP was $206.
Sweden's Debt was $62 in 2000 while its GDP was $118. In 2010 Sweden's debt was $190 while its GDP was $231.
France's debt in 2000 was $292 while its GDP was $586. In 2010 France's debt was $700 while its GDP was $1420.
What is thedebt-to-GDP ratio for all four nations in both 2000 and 2010?
What isthe average yearly budget deficit for each of the nations over this period?
In your judgment, which of the four nations was in the worse fiscal shape in 2010?Use your computations from above to justify your answer.
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