Question
The first table displays Congressional Budget Office forecasts made in January 2015 of future federal budget deficits. Compare these forecasts with actual deficits for those
The first table displays Congressional Budget Office forecasts made in January 2015 of future federal budget deficits. Compare these forecasts with actual deficits for those same years (see the second table), and then answer the questions.
Year: | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Deficit forecast (in billions of dollars) | 468 | 467 | 489 | 540 | 652 | 739 |
Fiscal Year | Budget Balance = | Cyclical Component + | Structural Component |
2015 | 439 | 86 | 353 |
2016 | 585 | 76 | 509 |
2017 | 665 | 53 | 612 |
2018 | 779 | 11 | 790 |
2019 | 984 | 53 | 1,037 |
2020 | 1,074 | 87 | 1,161 |
a. From 2015-2020, in how many years was the CBO too optimistic (underestimating the deficit)?
b. During this same period, in how many years was the CBO too pessimistic?
c. In which year the the CBO miss their estimate by the largest amount?
d. How much was added to the national debt from 2015 through 2020? $ trillion
e. During the same years, how much was the national debt increased from the cyclical component? $ billion
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