Go to the FRED economic database web site: We are going to create a data series showing federal expenditures as a percentage of GDP. First find Federal Government Current Expenditures by typing that into the white search box on the FRED web site, then hit the search button.

Your first search hit should be "Federal Government: Current Expenditures." Click on it.

You should now see a graph with current expenditures. Click on the red button, EDIT GRAPH. A side bar on the right should open up.

We are going to add a second data series, one for GDP. In the search box under "Customize Data" in the side bar, type Gross Domestic Product.

Underneath the search box you will see suggestions. You should see "Gross Domestic Product," as the first item. Click on it. Do not use "Real Gross Domestic Product." Click on the Add button next to the search box.

A little further down there is a box that says "Formula." You should already see an "a" in the box. You want the finished formula to be (a/b)*100. Then click on "Apply." Your graph should change, and the graph's title should now read, "(Federal Government: Current Expenditures/Gross Domestic Product)*100 Click on the blue Download button, above and to the right of your graph, and select Image (graph).

Download the image to your computer. Use the "Attach Files" option when submitting your assignment to attach your graph. Now answer the following questions:

Approximately what percentage of GDP was spent by the Federal government in the most recent quarter? You can mouse over the graph to get the amount. You can also use the slider below the graph to adjust the time frame. Look at the same percentage during the 2008-2010 time period.

What happened to Federal Government spending as a percentage of GDP during that time period?

Give an explanation for your observation about the difference between the two time periods in question 1 and question 2.

Looking at the time period on the graph between 1975 and 2022 (a period of 45 years), would you say the size of the federal government, by this measure, increased, decreased, or stayed about the same?