Final answer:
The total government debt at the end of year three is $4.7 billion, after accounting for deficits in the first two years and a surplus in the third.
Step-by-step explanation:
Calculating the total government debt involves adding deficits or subtracting surpluses from the starting debt amount. For problem 51, the government begins with a debt of $3.5 billion. In the first year, a deficit of $400 million is added, and in the second year, another deficit of $1 billion is added. However, in the third year, the government runs a surplus of $200 million, which is subtracted from the accumulated debt.
So, the calculation for the total debt at the end of year three would be:
- Year 1: $3.5 billion + $0.4 billion = $3.9 billion
- Year 2: $3.9 billion + $1 billion = $4.9 billion
- Year 3: $4.9 billion - $0.2 billion = $4.7 billion
Therefore, the total debt at the end of year three is $4.7 billion.