Web Activity 1

The U.S. federal budget is the focal point for debate on the proper role of government in the economy. Identify a liberal argument in favor of increased government spending at the Center on Budget and Policy Priorities at www.cbpp.org. Click the "Areas of Research" tab. Then identify a conservative argument against increased government spending at the National Center for Policy Analysis at www.ncpa.org. Click the "Research" tab. For each side, give one possible counterargument to the position taken.

Web Activity 2

Find historical federal budget data at from the Economic Report of the President which can be found at http://fraser.stlouisfed.org. Search for Table B-1 and select TABLE B-1. Gross domestic product, 1959-2006. How have federal government expenditures grown in the last 25 years? Price levels have doubled in the last 25 years, so what has happened to the real federal budget over that span?