Real-Time Data Analysis Exercise* Consider the data below for federal budget rec

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 Spending Real GDP (billions of dollars per year, in constant 2005 dollars) Receipts (billions of dollars per(billions of dollars Federal Surplus or Deficit as a percentage of GDP (%) Year 2013 2014 2015 2016 2,775 3,021 3,250 3,268 per year) 3,455 3,506 3,688 3,853 16,785 17,522 18,219 18,707 Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis

Explanation / Answer

Federal surplus / deficit is given by = Federal budget receipts - federal government spending

As a % of GDP, it is calculated as Federal surplus / deficit/Real GDP for a particular year

2013 = (2775 - 3455)*100/16785 = -4.05%

2014 = (3021 - 3506)*100/17522 = -2.77%

2015 = (3250 - 3688)*100/18219 = -2.40%

2016 =  (3268 - 3853)*100/18707 = -3.13%

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