Question

In the U.S. and other developed countries, the national debt is measured in billions and trillions of dollars (or the equivalent in other currencies). Money of these magnitudes is almost impossible to comprehend. The best or most meaningful way to measure national debt is to calculate:_____________.

Answer 1

Debt as a percentage of GDP

Step-by-step explanation:

Debt as a percentage of GDP involves comparing the debt of a country to that country GDP. GDP stands for gross domestic product which refers to the total monetary value of all final goods produce within the geographical boundary of a particular country for a period of time, say one year. Now, when a country's debt is compared to its GDP, it indicates the country ability to pay those debts. If a country debt to GDP ratio is high, it indicates that the country is not producing enough to pay its debts and vice versa is the case for low debt to GDP ratio.