Problem

Consider 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 or surplus and debt as a percentage of GDP in 2000 and 2010. Comment on the changes.
\begin{tabular}{|l|r|r|r|}
\hline Year & \begin{tabular}{c}
Surplus or \\
Deficit
\end{tabular} & Debt & GDP \\
\hline 2000 & 232 & 5800 & 9821 \\
\hline 2010 & -1407 & 15,000 & 13,939 \\
\hline \begin{tabular}{l}
2020 \\
(projected)
\end{tabular} & -470 & 19,500 & 80,000 \\
\hline
\end{tabular}

In 2000, the surplus is $\square \%$ and the debt as a percentage of GDP is $\square \%$.
(Round to one decimal place as needed.)

Answer

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Answer

So, in 2000, the surplus is \(\boxed{2.4\%}\) and the debt as a percentage of GDP is \(\boxed{59.1\%}\).

Steps

Step 1 :Given the surplus or deficit, debt and GDP for the year 2000 as 232 billion dollars, 5800 billion dollars and 9821 billion dollars respectively.

Step 2 :To find the surplus as a percentage of GDP, we divide the surplus by the GDP and then multiply by 100. This can be represented as \(\frac{Surplus}{GDP} \times 100\).

Step 3 :Substituting the given values, we get \(\frac{232}{9821} \times 100\).

Step 4 :Calculating the above expression, we get the surplus as a percentage of GDP to be approximately 2.4%.

Step 5 :Similarly, to find the debt as a percentage of GDP, we divide the debt by the GDP and then multiply by 100. This can be represented as \(\frac{Debt}{GDP} \times 100\).

Step 6 :Substituting the given values, we get \(\frac{5800}{9821} \times 100\).

Step 7 :Calculating the above expression, we get the debt as a percentage of GDP to be approximately 59.1%.

Step 8 :So, in 2000, the surplus is \(\boxed{2.4\%}\) and the debt as a percentage of GDP is \(\boxed{59.1\%}\).

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