Suppose You Have the Following Data on Projected and Actual

question 19

Essay

Suppose you have the following data on projected and actual figures for the U.S. budget for 2001 (in billions of dollars): (A)What was the projected budget deficit? What was the actual budget deficit? Why did this happen?
(B)If the government debt was $3,530 billion at the end of 2000, what was the debt at the end of 2001?
(C)If GDP was $9,500 billion in 2001, what was the debt to GDP ratio? How does this compare to 1992's debt to GDP ratio?

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Definitions:

Hypotheticals

Hypotheticals refer to situations or scenarios that are imagined or speculated about, often used in reasoning or in discussing possible outcomes.

Principle

A basic principle or statement that forms the basis for a belief system or for logical thinking.

Rational

The quality of being based on or in accordance with reason or logic, often related to the ability to think, understand, and form judgments by a process of logic.

Fully Rational Being

An entity capable of comprehensive reasoning, capable of making logically consistent decisions based on full information.