In July 2022, the CBO projected that the federal government’s budget deficit for 2023 would equal 3.7 percent of GDP. In June 2023, the CBO raised its estimate of the 2023 budget deficit to 5.8 percent of GDP. The CBO also changed some of its economic forecasts:

• In 2022, the CBO forecast that the unemployment rate in 2023 would be 3.6 percent. In June 2023, the CBO forecast that the unemployment rate in 2023 would be 4.3 percent.

• In 2022, the CBO projected that real GDP would increase by 3.0 percent in 2023. In June 2023, the CBO projected that real GDP would increase by only 0.3 percent.

What is the connection between the CBO’s forecast of a larger federal budget deficit and its changed economic forecasts?