Holding everything else constant,if total factor productivity increases,the debt-to-GDP ratio will ________,and if the labour force growth rate increases,the debt-to-GDP ratio will ________.

Question

Quizplus · Accepted Answer

An increase in total factor productivity boosts GDP, reducing the debt-to-GDP ratio. Similarly, an increase in the labor force growth rate also raises GDP, further decreasing the debt-to-GDP ratio.

Holding Everything Else Constant,if Total Factor Productivity Increases,the Debt-To-GDP Ratio