Question

The Public debt burden may fall on current generation or future generation depending on the operational definition of the term “generation”. With appropriate models/illustrations and operational definitions, show which generation bears the burden of public debt in a given economy.

Answer 1

This case public debt burden befall on current generation for future generation depending on the operational definition of the term generation is is a complicated one to represent generation scenario and the sustainability of the resources according to its uses basically government taking Dept for the fulfilment of its revenue deficit and for the development and in another way to create different employment opportunities to the upcoming generation but the question is new opportunities are on the basis of the present generation for the future generation for it is a development of present generation and on the basis of this social changes and innovation the future generation will enjoy various benefits and opportunities based on the present projects and work.
This concept is supported by the Keynesian model and the Pareto inferior equilibrium the situation is suggested on the basis of full employment equilibrium and underemployment equilibrium where the existence of voluntary unemployment and involuntary unemployment so in the case of involuntary unemployment the work done is bare by the future generation on the cost of the present generation