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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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