To which key set of expenditures do you suppose that "other things being equal" definitely applies in the government's projections displayed in panel (b) of Figure $14-6$? (Hint: Which types of expenses does the government often refer to as "non controllable"?)

The historically high net public debt to GDP ratios impose a burden on economic policies and politics.

It is critical that while determining whether the net public debt is good or bad, one should not make the error of using absolute quantities and instead considers the size of the economy.

The Gross Domestic Product (GDP) of an economy measures the size of a country's earnings.

The historical occurrence of a large net public debt ratio has influenced crucial economic indicators such as unemployment, interest rates, investment activity, political cohesion, and economic stability.

It is preferable to measure the economy's performance based on the net public debt rather than the gross public debt.

This is because the federal government's liabilities include both its own and those of others.

The recent upward trend in net public debt suggests that most countries throughout the world are reliant on sovereign debt to fund their government policies and expenditures.

The high level of net public debt is unfavourable and causes concern.

Economists believe that if debt is used responsibly, the economy may grow healthily. Too much debt is nonetheless significant in the early years of development since it points in the direction where the government is investing.

If the economy is developing at a quicker rate, a greater debt-to-GDP ratio is acceptable since future revenues will be able to service the debt. However, a persistently high net debt ratio casts a bad light on the economy's health.