In this assignment, you will learn about Federal Deficit and Debt.

First, carefully read the material on Federal Budget Deficit prepared by the National Priorities Project and watch the video below.

Tasks:

• Define Federal Deficit and Debt

• Graph 1: Using Fred data, prepare a graph for the Federal Surplus or Deficit [-] . Note that this graph is not adjusted for inflation.

• Graph 2: Using Fred data, prepare a graph for the real Federal Surplus or Deficit that is adjusted for inflation.

• Graph 3: Using Fred data, prepare a graph for the  Federal Surplus or Deficit as a Percent of Gross Domestic Product.

• Graph 4: Using Fred data, prepare a graph for the Federal Debt: Total Public Debt as Percent of Gross Domestic Product

• Carefully describe and analyze each graph. You should first explain what exactly the variable on the graph is. Next, you should comment on the relationship between the variable and the periods of recessions (shaded areas) and expansions. You should mention the periods when the variable on the graph was at its peak and why. When was is at the lowest level and why? For each graph I am expecting at least two paragraphs (300 words) of detailed explanations. 

Additional Resources

• The US National Debt and How It Affects You

• Why Does the U.S. Have So Much Debt?

• What Is the Debt-to-GDP Ratio?