Principles of Economics: Problems: Global Economic Growth
Principles of Economics: Problems: Utility and Spite and Envy: RMU and Cabo Vacations

Principles of Economics: Problems: CBO

Websurf your way over to the Congressional Budget Office’s most recent Long-Term Budget Outlook at http://www.cbo.gov/ftpdocs/115xx/doc11579/06-30-LTBO.pdf. Read it.

  1. What is federal health care spending currently as a percentage of GDP?

  2. What does the CBO think that federal health care spending—Medicare, Medicaid, CHIP, and Exchange Subsidies—is likely to be as a percentage of GDP in 2035?

  3. What does the CBO say that Social Security spending currently is as a percentage of GDP?

  4. What does the CBO think that Social Security spending is likely to be as a percentage of GDP by 2035? In 2035, CBO projects it to be 6.2%

  5. Why, in your own words, does the CBO believe that the share of GDP the federal government spends on its major “mandatory” programs is going to rise between now and 2035?

  6. What does the Congressional Budget Office project that the federal debt held by the public will be, as a share of GDP, in 2035, if congress and the president either adhere to the “baseline” of current federal programs or if they hold to PAYGO— that is, cut one program or raise taxes by the amount by which they raise another program? What, in your own words, is the logic behind this projection?

  7. What does the Congressional Budget Office project that the federal debt held by the public will be, as a share of GDP, in 2035, if congress and the president continue to do business more- or-less as they have done business since 1980? What, in your own words, is the logic behind this projection?

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