Real-Time Data Analysis Exercise Consider the data below for federal budget rece
ID: 1149149 • Letter: R
Question
Real-Time Data Analysis Exercise Consider the data below for federal budget receipts, federal budget spending, and GDP in the U.S. Calculate the federal budget surplus or deficit as a percentage of GDP for each year. (Enter your responses rounded to two decimal places and include a minus sign for a deficit) Federal Federal Budget Government Receipts Spending Real GDP (billions of dollars per (billions of dollars (billions of dollars per year, Federal Surplus or Deficit Year 2012 2013 2014 2015 per y in constant 2005 dollars) as a percentage of GDP 2,450 2,775 3,021 3,250 3,537 3,455 3,506 3,688 16,155 16,692 17,428 18.121 Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis.Explanation / Answer
Working notes:
(1) Budget Balance = Receipts - Spending
(2) When Receipts > Spending, Budget balance is a surplus (positive), and when Receipts < Spending, budget balance is a deficit (negative).
(3) Surplus/Deficit as % of GDP = Budget balance / Real GDP.
Therefore:
Year Receipt ($B) Spending ($B) Real GDP ($B) Budget Balance ($B) Federal Surplus/Deficit as % of GDP (%) (A) (B) (C) (D)=(A)-(B) [(D)/(C)]x100 2012 2,450 3,537 16,155 -1,087 -6.73% 2013 2,775 3,455 16,692 -680 -4.07% 2014 3,021 3,506 17,428 -485 -2.78% 2015 3,250 3,688 18,121 -438 -2.42%Related Questions
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