The most common measure of productivity shocks is known as

Countries are concerned about small changes in their average annual growth rates in per capita income because

A) growth rates are a factor in U.N. participation. B) the power of compounding means small changes have large effects over time. C) growth rates tend to decline over time. D) the faster a country grows today, the less it will be able to consume in the future.

In June of 2010, the government had a debt of about $8.6 trillion. Over the next year real GDP grew by about 1.6% and inflation was about 2%. What is the largest deficit the government could have run over this time without raising the debt-to-GDP ratio?

a. about $68.8 billion b. about $137.6 billion c. about $275.2 billion d. about $309.6 billion