The following table displays Congressional Budget Office forecasts of federal budget balances for the following fiscal years.

Question:

The following table displays Congressional Budget Office forecasts of federal budget balances for the following fiscal years. Compare these forecasts with actual surplus and deficits for those same years (see Table 12.3 for data).

2000 2001 2002 | 2003 2004 2005 2006 2007 2008 2009 Year Deficit forecast +161 +268 | +176 | -315 |-480 -348 -314-285 -1

(a) In how many years was the CBO too optimistic (underestimating the deficit or overestimating the surplus)?

(b) In how many years was the CBO too pessimistic?

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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Question Posted: May 30, 2018 03:41 AM

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The following table displays Congressional Budget Office forecasts of federal budget balances for the following fiscal years.

Question:

2000 2001 2002 | 2003 2004 2005 2006 2007 2008 2009 Year Deficit forecast +161 +268 | +176 | -315 |-480 -348 -314-285 -155-438 (in billions of dollars)

Step by Step Answer:

a 5 b 5 Feedback a According to Table 123the CBO was too opt...View the full answer

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