Problem

der the table showing past and projected federal revenue, spending, and GDP. All figures are in billions of dollars rounded to the nearest billion. Find the deficit as a percentage of GDP in 2015 and 2025 (projected). What is the percentage change during this period? \begin{tabular}{|l|c|r|c|} \hline Year & \begin{tabular}{c} Surplus or \\ Deficit \end{tabular} & Debt & GDP \\ \hline 2005 & -310 & 8105 & 12,825 \\ \hline 2015 & -441 & 18,180 & 17,500 \\ \hline 2025 & -1172 & 35,856 & 28,235 \\ \hline \end{tabular} the deficit as a percentage of GDP in 2015 ? The deficit was $\square \%$. (Round to one decimal place as needed.) What is the projected deficit as a percentage of GDP in 2025 ? The deficit is projected to be $\square \%$. (Round to one decimal place as needed.) What is the percentage change during this period? The percentage change was $\square \%$. (Round to one decimal place as needed.)

Solution

Step 1 :First, we calculate the deficit as a percentage of GDP for the years 2015 and 2025. This can be done by dividing the deficit by the GDP and then multiplying by 100 to get the percentage.

Step 2 :For 2015, the deficit is -441 billion dollars and the GDP is 17,500 billion dollars. So, the deficit as a percentage of GDP in 2015 is \(-\frac{441}{17500} \times 100 = -2.52\%\).

Step 3 :For 2025, the projected deficit is -1172 billion dollars and the projected GDP is 28,235 billion dollars. So, the projected deficit as a percentage of GDP in 2025 is \(-\frac{1172}{28235} \times 100 = -4.15\%\).

Step 4 :Next, we calculate the percentage change during this period by subtracting the percentage in 2015 from the percentage in 2025, dividing by the percentage in 2015, and then multiplying by 100.

Step 5 :The percentage change is \(\frac{-4.15 - (-2.52)}{-2.52} \times 100 = 64.72\%\).

Step 6 :Final Answer: The deficit as a percentage of GDP in 2015 was \(\boxed{-2.52\%}\). The projected deficit as a percentage of GDP in 2025 is \(\boxed{-4.15\%}\). The percentage change during this period is \(\boxed{64.72\%}\).

From Solvely APP
Source: https://solvelyapp.com/problems/3rflKnoL6A/

Get free Solvely APP to solve your own problems!

solvely Solvely
Download