During the Financial Year 2014-2015,the Government of Canada Ran a Surplus

Essay

During the financial year 2014-2015,the government of Canada ran a surplus of $1.9 billion,bringing the government's public debt to $612.3 billion.(The debt-to-GDP ratio was 31 percent,still down from the preceding year.Source: Government of Canada,Annual Financial report,http: / / www.fin.gc.ca / afr-rfa / 2015 / 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?