Problem
Using quarterly data since 1948, graph the Federal deficit as a percentage of GDP. Draw lines on the figure corresponding to business cycle peaks and troughs. What is the cyclical behavior of the Federal deficit? Repeat this exercise for the deficits of state and local governments. Are state and local deficits more or less cyclically sensitive than Federal deficits?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.