ECON614 table 20-2 shows how the U.S. government's spending has changed over the last several decades. a. Calculate how much total spending as a percentage of GDp has increased since the 1960s. b. In the 1960s (due largely to spending for the war in vietnam) defense spending was the single largest component of total outlays. What has been the largest component since then? c. What types of outlays does the table suggest are responsible for growth in total spending since the 1960s?

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TABLE 20-2 Federal Government Outlays (Percent of GDP; Fiscal Years; Period Average) National defense Mandatory spending Nondefense discretionary spending Net interest Total outlays* 1962-1969 1970-1979 1980-1989 8.7 6.2 3.8 1.3 18.8 5.9 9.4 4.5 1.5 20.0 5.8 10.8 4.1 2.8 22.2 1990-1999 4.1 11.2 3.6 3.0 20.7 *Column totals do not match total outlays because "offsetting receipts" are excluded. Source: Congressional Budget Office, Historical Budget Data, January 26, 2006, and January 26, 2010. 2000-2009 3.8 11.9 3.7 1.7 20.0 TABLE 20-2 Federal Government Outlays (Percent of GDP; Fiscal Years; Period Average) National defense Mandatory spending Nondefense discretionary spending Net interest Total outlays* 1962-1969 1970-1979 1980-1989 8.7 6.2 3.8 1.3 18.8 5.9 9.4 4.5 1.5 20.0 5.8 10.8 4.1 2.8 22.2 1990-1999 4.1 11.2 3.6 3.0 20.7 *Column totals do not match total outlays because "offsetting receipts" are excluded. Source: Congressional Budget Office, Historical Budget Data, January 26, 2006, and January 26, 2010. 2000-2009 3.8 11.9 3.7 1.7 20.0

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a To calculate how much total spending as a percentage of GDP has increased since the 1960s we need ... View the full answer