1. Suppose you have the following data on projected and actual figures for the U.S. budget for a given year (in billions of dollars).

	Projected Budget ($)	Actual Budget ($)
Taxes	2,286	2,407
Expenditures	2,709	2,655

• What was the projected budget surplus or deficit? What was the actual budget surplus or deficit? Why might this happen?
• If the government debt was $4,592 billion at the start of the year, what was the debt at the end of the year?
• If real GDP was $12,300 billion, what is the debt-to-GDP ratio?