2. Greece, Ireland and Portugal all went through national budget difficulties after the financial crisis. Use...

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2. Greece, Ireland and Portugal all went through national budget difficulties after the financial crisis. Use...

2. Greece, Ireland and Portugal all went through national budget difficulties after the financial crisis. Use the following data to answer the questions regarding the sovereign debt of these nations (all numbers are in billions of dollars)

	1999		2009
	Debt	GDP	Debt	GDP
Greece	$124	$112	$350	$290
Ireland	$28	$64	$68	$98
Portugal	$51	$102	$160	$180

a) Compute the debt-to-GDP ratio for all three nations in both 1999 and 2009.

b) Compute the average yearly budget deficit for each nation over this period.

c) In your judgement, which of the following four nations was in the worst fiscal shape in 2009? Support your answer with computations from parts (a) and (b).

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Answer 1

Answer #1

Answer: Given that, values... from the following table, a lets find out I a debt-to-thop Satio for all those three nations i g) [Debteaaa - Debt-2004] 10. Corece : $150 – $124 o 2. 7337.6 Billion dollar Goeland. $ 68 - $28. -10 . +65.2 billion dollar

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2. Greece, Ireland and Portugal all went through national budget difficulties after the financial crisis. Use...

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