Budget Analysis.Assume that the composition of federal outlays and receipts shown in figure 4.17 remained the same in 2017.Also assume that total revenue for 2017 was $3.31 trillion and the total spending was $3.89 trillion.

Suppose that in 2018, total spending increases by 1.6% and total revenue increases by 2.0% from the 2017 levels given above.Would the 2018 deficit be larger, smaller, or the same as the 2017 deficit?Explain.

The answer for #29 will be

Revenue Increases $66.2 billion; Spending increases by $62.2 billion; deficit decreases.

Federal Spending Medicaid, government pensions, Interest and other mandatory spending on debt Discretionary outlays Mandatory outlays (3) FIGURE 4.1 7 Approximate makeup of (a) federal revenue and (b) federal spendln ' that all categories except \"Defense and homeland security\" and \"Non-defense discretionary" are considered mandatory. Source: Congressional Budget Office