Suppose that the Office of Management and Budget provides the accompanying estimates of federal budget receipts, federal budget spending, and GDP, all expressed in billions of dollars. Calculate the implied estimates of the federal budget deficit as a percentage of GDP for each year. (Enter each response as a percentage rounded to one decimal place. Do not include a plus or minus sign.) Federal Budget Receipts (2% growth) $2,329.8 Federal Budget Spending (5% growth) $2.6826 GDP Deficit as a % Year (3% growth) of GDP 2019 $14,573.2 2020 2,376.4 2,816.7 15,010.4 2021 2,423.9 2,957.6 15,460.7 2022 2,472.4 3,105.4 15,924.5

(i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one will be the biggest figure? Explain your reasoning. Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain your reasoning. (ii)

(b) Malaysia's fiscal deficit to rise to level seen during global financial crisis KUALA LUMPUR - Malaysia's fiscal deficit for 2021 should hit a level similar to that seen during the global financial crisis more than a decade ago, according to the government's first-ever pre-budget statement. Released on Tuesday (Aug 31), the country's Independence Day, the pre-budget statement showed the fiscal deficit reaching between 6.5 per cent and 7 per cent for 2021, higher than the 5.4 per cent initially estimated. The deficit reached 6.7 per cent during the 2008-2009 global financial crisis. Malaysia's economy has been battered since a budget projection was first made late last year, with the country beset by surging Covid-19 infections and repeated lockdowns for much of the year. Analyze the impact of the government budget deficit on Malaysia's open economy. Include a three-panel diagram, the market for loanable funds, net capital outflow and the market for foreign currency exchange to…

Economics

Describe how a budget deficit arises and explain the corresponding action typically taken by a government in this type of circumstance. Discuss the major categories that the U.S. government spends its tax revenue on and indicate what percentage of tax revenue is spent on these categories on an annual basis. please answer shortly