During the Financial Year 2017-2018, the Government of Canada Ran

Essay

During the financial year 2017-2018, the government of Canada ran a deficit of $19 billion, increasing the government's public debt to $671.3 billion. (The debt-to-GDP ratio was 31.3 percent, which was down from the preceding year. Source: Government of Canada, Annual Financial report, HYPERLINK "https://www.fin.gc.ca/afr-rfa/2018/report-rapport-eng.asp" https://www.fin.gc.ca/afr-rfa/2018/report-rapport-eng.asp). Assuming an inflation rate of 2 percent, what real GDP growth rate would have allowed the government to run a deficit this large without raising the debt-to-income ratio?