Answer:
Explanation:
1. Deficit = fed receipts - fed spending
= 2329.8 - 2682.6 = $ 352.8
GDP = 14573.2
Deficit as a % of GDP = 352.8 / 14573.2) * 100 = 2.42%
2. DEFICIT = 2736.3 - 2446.3 = $290
As a % of GDP = 290 / 14573.2)*100 = 1.98%
3. Deficit = 2791 - 2568.6 = $222.4
As a % of GDP = 222.4 / 14573.2)*100 = 1.52%
4. Deficit = 2846.8 - 2697 = $149.8
As a % of gdp = 149.8/ 14573.2 ) *100 = 1.02%
Question in proper order:
Suppose that the office of management and budget provides the accompanying estimates of federal budget receipts, federal budget spending, and GDP, all expressed in billions of dollars. Calculate the implied estimates of the federal budget deficit as a percentage of GDP for each year. Enter each as a percentage rounded to one decimal place.
Federal Federal
Year Budget Receipts Budget Spending GDP Deficit as %of GDP
(22% growth) (33% growth) (22%grw)
2011 2329.8 2682.6 14573.2 -
2012 2842.4 3567.9 17779.3 -
2013 3467.7 4745.3 21690.8 -
2014 4230.6 6311.2 26462.7 -
Answer and Explanation:
Budget Budget Budget Deficit as
Year Receipts(R) Spending(S) Deficit(R - S) GDP % of GDP
2011 2329.8 2682.6 352.8 14573.2 2.4%
2012 2842.4 3567.9 725.5 17779.3 4.1%
2013 3467.7 4745.3 1277.6 21690.8 5.9%
2014 4230.6 6311.2 2080.6 26462.7 7.9%
Note
the first values were assumed
2012(R) = 2011(R) x 1.22 ; 2013(R) = 2014(R) x 1.22 etc (at 22% growth rate)
2012(S) = 2011(S) x 1.33 ; 2013(S) = 2014(S) x 1.33 etc (at 33% growth rate)
2012(GDP) = 2011(GDP) x 1.22 ; 2013(GDP) = 2014(GDP) x 1.22 etc (at 22% growth rate)
Budget Deficit (D) = Budget Receipts (R) - Budget Spending (S)
Deficit as percent of GDP = (D/GDP) * 100%
Download the attached pdf for additional information and a very clear table
