Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inflation, Unemployment And Capital Malformations

Authors: Bernard Schmitt, Xavier Bradley, Alvaro Cencini

1st Edition

0429767064, 9780429767067

More Books

Students also viewed these Economics questions

Question

1.. Explain how an embedded audit module works.

Answered: 1 week ago

Question

Graph g(x)=x-5. Use the graphing tool to graph the function.

Answered: 1 week ago

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago