## Homework: The Aggregate Economy### Data TableThe table below presents the revenue, expenditure, and GDP figures for the years 2000 to 2004 in billions of dollars:| Year | Revenues (Billions of dollars) | Expenditures (Billions of dollars) | GDP (Billions of dollars) ||------|---------------------------------|------------------------------------|---------------------------|| 2000 | 2,025 | 1,789 | 9,817 || 2001 | 1,991 | 1,863 | 10,128 || 2002 | 1,853 | 2,011 | 10,470 || 2003 | 1,783 | 2,160 | 10,961 || 2004 | 1,880 | 2,293 | 11,656 |### InstructionsPlot the data for revenues and expenditures as a percentage of GDP on the graph provided below, rounded to the nearest percent. Use the purple points (diamond symbol) for expenditures and the green points (triangle symbol) for revenues.**Note:** Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.### Graph DescriptionA blank graph is provided for plotting. The x-axis represents the years from 1999 to 2005, and the y-axis represents expenditures and revenues as a percentage of GDP. The graph includes two legend entries: one for Expenditures (purple diamond) and one for Revenues (green triangle).### Questions1. **In which years was the government’s budget in deficit? Check all that apply.** - [ ] 2000 - [ ] 2001 - [ ] 2002 - [ ] 2003 - [ ] 20042. **In 2001, the national debt _________ by _________.**### Answering Questions1. A government budget is in deficit when expenditures exceed revenues. Based on the data provided, check the applicable years.2. For the second question, calculate the difference between revenues and expenditures in 2001 and determine whether the debt increased or decreased.This exercise helps in understanding the relationship between government revenue, expenditure, and GDP, and how it affects the national budget and debt.

(1) Revenue as % of GDP = (Revenue*GDP)100 Expenditure as % of GDP = (Expenditure÷GDP) 100 Year…

Billions of dollars) (Billions of dollars) 1,789 9,817 1,863 10,128 2,011 10,470 2,160 10,961 2,293 11,686 res as a percentage of GDP on the following graph, rounded to the nearest percent. Use the purple points the green points (triangle symbol) for revenues. ich you would like them connected. Line segments will connect the points automatically. Expenditures Revenues 2003 2004 2005 dget in deficit? Check all that apply.

Billions of dollars) (Billions of dollars) 1,789 9,817 1,863 10,128 2,011 10,470 2,160 10,961 2,293 11,686 res as a percentage of GDP on the following graph, rounded to the nearest percent. Use the purple points the green points (triangle symbol) for revenues. ich you would like them connected. Line segments will connect the points automatically. Expenditures Revenues 2003 2004 2005 dget in deficit? Check all that apply.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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