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 response as a percentage rounded to one decimal place. Do not include a plus or minus sign.) Federal Budget Receipts (2% growth) $2,329.8 Federal Budget Spending (5% growth) $2.6826 GDP Deficit as a % Year (3% growth) of GDP 2019 $14,573.2 2020 2,376.4 2,816.7 15,010.4 2021 2,423.9 2,957.6 15,460.7 2022 2,472.4 3,105.4 15,924.5

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 response as a percentage rounded to one decimal place. Do not include a plus or minus sign.) Federal Budget Receipts (2% growth) $2,329.8 Federal Budget Spending (5% growth) $2.6826 GDP Deficit as a % Year (3% growth) of GDP 2019 $14,573.2 2020 2,376.4 2,816.7 15,010.4 2021 2,423.9 2,957.6 15,460.7 2022 2,472.4 3,105.4 15,924.5

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 19E

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