Question

What does it mean to measure a government's deficit "relative to the size of the economy"?
Responses

to compare the size of the deficit to the unemployment rate
to compare the size of the deficit to the unemployment rate

to compare the size of the deficit to productivity
to compare the size of the deficit to productivity

to measure the deficit as a percentage of tax revenues
to measure the deficit as a percentage of tax revenues

to measure the deficit as a percentage of the economy or GDP
to measure the deficit as a percentage of the economy or GDP
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Assignment


5 of 10

Answer 1

To measure the deficit as a percentage of the economy or GDP — i.e., the deficit-to-GDP ratio.