Question

If federal debt is calculated in millions of dollars, and GDP is calculated in billions of...

If federal debt is calculated in millions of dollars, and GDP is calculated in billions of dollars, how is the federal debt as a percentage of GDP possible?

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Answer #1

ANSWER:

Finding federal debt as a percentage of gdp is possible because when we are finding percentage the units have to be similar and here bothe the federal debt and gdp will be in dollars.

for example if the federal debt is 100 million dollars while gdp is 100 billion dollars

then federal debt as a percentage of gdp = (100,000,000 / 100,000,000,000) * 100 = 0.001 * 100 = 0.1%

so with this example we can say that having federal debt in millions of dollars and gdp in billions of dollars doesn't effect the percentage to be found out.

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