Go to the St. Louis Federal Reserve FRED database, and find data on the total go

Question

Go to the St. Louis Federal Reserve FRED database, and find data on the total government debt as a percentage of GDP (GFDEGDQ188S) for the United States https://fred.stlouisfed.org/series/GFDEGDQ188S and gross domestic product (GDP) https://fred.stlouisfed.org/search?st=GDP. Provide a justification for the GDP series you select for the analyses.
a) Report the most current available debt-to-GDP ratio, and the ratio one year prior and five years prior.
b) Based on the entire available database for the debt-to-GDP ratio, when was the last time the debt-to-GDP ratio peaked? What was the peak value and how does it compare to the most recent value?
c) What is the percentage point difference in the debt-to-GDP ratio between the most recent period and one year ago? Between the most recent period and five years ago?
d) Calculate the total percentage increase in GDP from one year before the most recent period available and also from five years before the most recent period available.
e) Compare the change in the debt-to-GDP ratio and the growth rate of GDP over the periods mentioned in (c) and (d). What can you conclude about the behavior of debt and GDP over the last year? Over the last year?

Explanation / Answer

The below answer from the charts shown in the links mentioned in the question

a) The most current period is Q1 2016 the debt to GDP ratio is 1.054. in Q1 2015 the ratio was 1.021 and in Q1 2011 it was 0.936.

b) Most rrecent valse i.e. the value for Q1 2016 debt to GDP ratio is highest in complete data i.e. 1.054

c) The percentage point difference between Q1 2016 and Q1 2015 is 1.054-1.021=0.033*100=3.3%. The percentage point difference between Q1 2016 and Q1 2011 is 1.054-0.936=0.118*100=11.8%

d) GDP Q2 2016 = 18,437.6 GDP Q2 2015 = 17,998.3 GDP Q2 2011 = 15,460.9

GDP increase from 2015 = (18437.6-17998.3)/17998.3*100 = 2.44%

GDP increase from 2011 = (18437.6-15460.9)/15460.9*100 = 19.25%

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