Activity 9: Budget Surplus and Budget Deficit This activity focuses on the U.S. government's budget, and you will use FRED to find data that pertain to it. FRED@ is a great and simple tool for finding, viewing, and manipulating official data. 1. Go to https://fred.stlouisfed.org/ and sign in to your personal FRED@ account. 2 . In the search bar, type in "surplus deficit." One of the first few results should be Federal government budget surplus or deficit. Click on this. This is calculated by subtracting the federal government's fiscal year expenditures from its receipts. . Now set the date range from I Jan 1980 to | Oct 2021. What are the units of measure and what is the reported amount for Q4-2019? 3. During periods of recession, what typically happens to this indicator? What happened during the 2007-09 recession? 4. Let's put the government deficit into context. Click the orange EDIT GRAPH button and select the ADD LINE tab. In the search box, type in "surplus deficit." One of the first few options should be Federal Surplus or Deficit as Percent of Gross Domestic Product. This is the ratio arrived at using the following formula: Total federal government receipts (-) Total federal government expenditures / GDP. Click on that, and then click the Add data series button. Next, click the FORMAT tab and for LINE 2, under Y-Axis position, select Right. Finally, make sure the date range is from I Jan 1980 to | Oct 2021. 5. Describe any pattern you observe. What is the historical norm for how big the deficit has been compared to GDP? 6. What happened to the federal budget deficit during the 2007-09 recession? Why do you think that is