To see what is going on, economists often "adjust" the data to reflect changes in the economy.

Q 1. To see what is going on, economists often "adjust" the data to reflect changes in the economy. For instance, in the text, we discussed the adjustment in dollar amounts made to correct for inflation. Another adjustment that is frequently made is to take into account the increase in population. What adjustments might you make in looking at education expenditures? At social security expenditures?

Q 2. Assume you were President and your planned expenditures exceeded your receipts. Describe some of the tricks you might use to reduce the apparent budget deficit while maintaining current level of services and transfers (subscribes). Assume on the other hand, run on a platform of keeping the growth in total governmental expenditures down to 3 %. Once in office, you see, however, that you would like expenditures to rise by 5%. How might you do this while appearing to keep your election promises?