What does it mean to measure a government's deficit "relative to the size of the economy"? to compare the size of the deficit to productivity to compare the size of the deficit to the unemployment rate to measure the deficit as a percentage of the economy or GDP to measure the deficit as a percentage of tax revenues

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Business

Tate Strickland

3 December, 15:09

What does it mean to measure a government's deficit "relative to the size of the economy"? to compare the size of the deficit to productivity to compare the size of the deficit to the unemployment rate to measure the deficit as a percentage of the economy or GDP to measure the deficit as a percentage of tax revenues

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Fabian Savage · Answer 1

measure the size of the deficit as a percentage of the economy or GDP.

Isabell · Answer 2

I would say the answer would be to measure the size of the deficit as a percentage of the economy or GDP. The GDP is the annual total value of goods produced and services provided in an economy to place the deficit in the right perspective of the economic performance overall.