FRED work (Introduction)

The best way to learn how to use FRED is to use FRED! So complete the exercises described below, where your final product for #3 is a time-series line (not bar!) graph of the ratio of the U.S. government annual budget deficit or surplus to GDP (gross domestic product) through 2020 (or 2021, if latest data become available). And your final product for #4 and #5, a time-series graph of the ratio of total U.S. government debt to GDP through 2020. In addition to copying each of your completed graphs into the designated spaces below, make sure you answer each of the questions shown in bold as well. (Note: while not necessary, if you wish, you can check out the following 10-minute tutorial: https://www.stlouisfed.org/~/media/education/lessons/pdf/10-fred-activities-in-10-minutes.pdf?la=en)

(a) Go to FRED by typing into your browser the following address:

https://fred.stlouisfed.org/

In the search bar that appears, type in "federal deficit or surplus annual" and hit the return key. Note that you'll have more than one option. Click on the heading "Federal Surplus or Deficit (-) /Millions of Dollars, Annual, Not Seasonally Adjusted," the first entry. When you do, the series code "FYFSD" should appear next to the title of the series along with a time series graph of annual data since 1901. Note that these data are for the fiscal year, October 1 - September 30.

By simply running the cursor over any point on the graph you can read off the surplus or deficit number for that (fiscal) year. A positive number is a surplus, meaning that the government collects more tax revenue than it spends in a given year. And a negative number is a deficit, meaning that the government spends more on government purchases of goods and services than it collects in taxes. Note that these data are expressed in millions of dollars. For example, the fiscal year 1985 figure of (-)$212,308 is read as a deficit of $212,308 million or $212.308 billion dollars. (Try it!) In other words, "212 thousand 308 million dollars" = $212.308 billion dollars, since 1 (U.S.) billion = 1000 million.

1. Eyeing the graph and placing the cursor over the relevant period, identify the year that the federal government ran its largest fiscal-year budget deficit? And what was this number, expressed in millions of dollars? (Use all digits shown.) (Note: do not print out this graph!) (0.5 points) (-

Answer:

1. What is the value of your answer to (i) in billions of dollars? (Include all decimal points.) And in trillions of dollars? (Round to three decimal points.) (Note: 1 U.S. trillion = 1000 U.S. billion.) (0.5 points) (-

Answer: