Consider the data below for federal budget receipts, federal budget spending, an

Question

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.)

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 year, (billions of dollars per(billions of dollars Federal Surplus or Deficit Year 2012 2013 2014 2015 in constant 2005 dollars) as a percentage of GDP 2,450 2,775 3,021 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

Surplus / Deficit = Receipts - Government spending

Ratio = Surplus or Deficit / Real GDP

e.g. In 2015:

Deficit = 3250 - 3688 = - $ 438 bn

Ratio = -438/18121 x 100 = -2.42%

Year Receipts ($ bn) Government Spending ($ bn) Real GDP ($ bn) Surplus or Deficit as a percentage of GDP (%) 2012 2450 3537 16155 -6.73% 2013 2775 3455 16692 -4.07% 2014 3021 3506 17428 -2.78% 2015 3250 3688 18121 -2.42%

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