In a recent issue of the Survey of Current Business, find the data section entitled “Selected NIPA Tables.” In Table 1.1.5, “Gross Domestic Product,” find data on gross domestic product (a measure of total output), exports, and imports. In Table 3.2, “Federal Government Current Receipts and Expenditures,” find data on the government’s total receipts (taxes) and expenditures. These tables from the Survey of Current Business can be accessed from the home page of the Bureau of Economic Analysis at www.bea.gov.
a. Calculate the ratio of exports to GDP, the ratio of imports to GDP, and the ratio of the trade imbalance to GDP in the latest reported quarter. Compare the answers with the values for the previous two complete years.
b. Calculate the ratio of Federal government receipts to GDP, the ratio of Federal government expenditures to GDP, and the ratio of the budget deficit to GDP, for the most recent quarter and for the previous two complete years.