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 toopessimistic?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? $trillione. During the same years, how much was the national debt increased fromthe cyclical component? $billion The first table displays Congressional Budget Office forecasts made inJanuary 2015 of future federal budget deficits. Compare these forecastswith actual deficits for those same years (see the second table), and thenanswer the questions.Year: 2015 2016 2017 2018 2019 2020Deficitforecast(inbillionsofdollars)-468-467-489-540-652-739Fiscal BudgetYear Balance =2015 -4392016 -585-86-76-5311532020 -1,074 872017-6652018 -779CyclicalComponent2019-984+StructuralComponent-353-509-612|-790-1,037-1,161

Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

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?

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?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter5: An Introduction To Macroeconomics

Section: Chapter Questions

Problem 1DQ

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Question

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

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 Budget
Year Balance =
2015 -439
2016 -585
-86
-76
-53
11
53
2020 -1,074 87
2017-665
2018 -779
Cyclical
Component
2019-984
+
Structural
Component
-353
-509
-612
|-790
-1,037
-1,161

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