The ratio of federal government spending to GDP in the United States is about:

Question

Quizplus · Accepted Answer

According to data from the Bureau of Economic Analysis, federal government spending in 2020 was approximately $7.23 trillion, while estimated GDP was approximately $21.43 trillion. Therefore, the ratio of federal government spending to GDP is approximately 0.337, or 33.7 percent. However, this ratio includes transfers such as Social Security and Medicare, which are not considered part of the federal budget. Excluding these transfers, federal government spending was approximately $4.4 trillion in 2020, and the ratio of federal government spending to GDP was approximately 20 percent. Therefore, choice C) 20 percent is the best answer.

The Ratio of Federal Government Spending to GDP in the United