Question

In 2021, the United States reported annual Real GDP at $ 19,609.8 billion and had a public debt of $ 23,143.75 billion. Compute the Debt-to-GDP ratio for the U.S. in 2021.

Answer 1

The Debt-to-GDP ratio for the United States in 2021 was calculated by dividing the public debt of $23,143.75 billion by the Real GDP of $19,609.8 billion and then multiplying by 100, resulting in a ratio of 118.01%.

Step-by-step explanation:

The Debt-to-GDP ratio is a key indicator of a country's financial health, used to assess the sustainability of its government debt. To calculate the Debt-to-GDP ratio, you divide the public debt by the Real GDP and then multiply by 100 to get a percentage. Using the figures provided for the United States in 2021: Public Debt: $23,143.75 billion, Real GDP: $19,609.8 billion

The Debt-to-GDP ratio can be computed as follows: ( Public Debt / Real GDP ) × 100 = ( $23,143.75 billion / $19,609.8 billion ) × 100 = 1.1801 × 100 = 118.01%. So, the Debt-to-GDP ratio for the U.S. in 2021 was 118.01%, indicating that the public debt exceeded the annual economic output of the country.