Question 3 (10 marks)

You are an economist at the finance ministry of Asiaca, and your supervisor is asking you to work on the country's stock of debt to GDP ratio, as borrowings have increased dramatically due to lockdowns during the COVID-19 pandemic. You have been presented with information for 2020 (time period t) and 2019 (time period t-1) as follows:

Expenditure for purchase of goods and services (G) in 2020	$60 bn
Average tax rate (