Econ Principle
Chapter 19: Aggregate Expenditures BY THE NUMBERS: DO IT YOURSELF! LAB ACTIVITY
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Name: Instructor: Course: Description: Aggregate expenditures drive economic activity, and the government is a major source of spending. This lab activity measures the level of government spending in the United States over the last 40 years. ______________________________________________________________________ Step 1: Acquire the latest available data on government spending as a percentage of GDP from the Government Publishing Office: https://www.gpo.gov/fdsys/. In the “Search Government Publications” box, enter “total government expenditures as percentages of GDP” and click search. Several Excel spreadsheet options will be shown—select one that includes data from 1976 (or earlier) up to the latest year possible. Step 2: Open the Excel spreadsheet and look for “Federal Government Outlays: Total”. Input government spending as a percentage of GDP in the table below. Data for the first ten years have already been entered.
Year Government
Spending % of GDP
Year
Government Spending %
of GDP
Year
Government Spending %
of GDP 1975 20.6 1989 2003 1976 20.8 1990 2004 1977 20.2 1991 2005 1978 20.1 1992 2006 1979 19.6 1993 2007 1980 21.1 1994 2008 1981 21.6 1995 2009 1982 22.5 1996 2010 1983 22.8 1997 2011 1984 21.5 1998 2012 1985 1999 2013 1986 2000 2014 1987 2001 2015 1988 2002 2016
Step 3: Using Excel, enter the data in the table into two columns, and add the title “Spending as Percent of GDP”. Do not title the “Year” column. Then use your mouse to
https://www.gpo.gov/fdsys/
Chapter 19: Aggregate Expenditures BY THE NUMBERS: DO IT YOURSELF! LAB ACTIVITY
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highlight the 86 cells (43 rows including the header row x 2 columns), click the “Insert” tab from the top banner, and finally under “Charts” select “Insert Line Chart”. Then right click the vertical axis in the chart and select “Format Axis”. Under Axis Options, enter “15” for the “Minimum Bound”. This will truncate the vertical axis. Copy and paste this chart into your response sheet.
Lab Questions:
1. Which year did government spending as a percentage of GDP reach its highest point? In which year was it at its lowest point?
2. Describe the trend in the chart during times of economic prosperity (such as from 1985 to 1990 and from 1993 to 2000). Describe the trend during economic recessions (such as from 1981 to 1982 and from 2008 to 2009).
3. Explain why the relationship described in Question 2 generally exists.
Chapter 19: Aggregate Expenditures
Description
Step 1
Step 2
Step 3
Lab Questions
Answer Key
Answer Key
