The federal budget deficit in 2014 was $485 billion. The CBO noted that “the changes in revenues and outlays that are attributable to cyclical changes in the economy are known as automatic stabilizers.” The CBO estimated that the value of automatic stabilizers in 2014 was -$168 billion.

a. What would the value of the federal budget deficit have been in 2014 if there had been no automatic stabilizers? 

b. Can you tell whether real GDP was above or below potential GDP in 2014? Briefly explain.