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).

Year	Federal Budget Receipts ​(billions of dollars per​year)	Federal Government Spending ​(billions of dollars per​ year)	Real GDP ​(billions of dollars per​ year, in constant 2005​ dollars)	Federal Surplus or Deficit as a percentage of GDP​ (%)
2011	2,303	3,603	15,543	​%
2012	2,450	3,537	16,197	​%
2013	2,775	3,455	16,785	​%
2014	3,021	3,506	17,522	​%

Answer 1

The budget deficit is when the government revenue falls short of the government spending, like wise the government surplus occurs when the government revenue exceeds the spending.

The calculation of the federal budget deficits as the percentage of the GDP is shown below.

a. 2011.  

  

  

Ans: ​​​​​​.

b. 2012.

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Ans: .

c. 2013.

Ans: .

d. 2014

.