2. Using quarterly data since 1948, graph the Federal deficit as a percentage of GDP. Draw lines...

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2. Using quarterly data since 1948, graph the Federal deficit as a percentage of GDP. Draw lines on the figure corresponding to business cycle peaks and troughs. What is the cyclical behavior of the Federal deficit? Repeat this exercise for the deficits of state and local governments. Are state and local deficits more or less cyclically sensitive than Federal deficits?

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Macroeconomics Value Edition

ISBN: 978-0136114895

7th Edition

Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore

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