Macroeconomics 10th Edition by William McEachern

Exercise 2

PUBLIC OUTLAYS AND DEBT In Exhibit 4, the United States ranks next to the lowest in 2013 among the 10 major economies shown for government outlays relative to GDP. But in Exhibit 6, the United States ranks third from the top in net government debt relative to GDP. How can U.S. public outlays be so relatively low yet U.S. net public debt be so relatively high?