The real rate of change in spending for air transportation

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Reference no: EM132282639

Federal outlays for air transportation increased from $16,743 million in 2004 to $20,923 million in 2014. The deflator for nondefense federal expenditures increased from 0.8838 in 2004 (2009=1.000) to 1.0893 in 2014. Answer these questions.

a. What is the real rate of change in spending for air transportation over this period?

b. Suppose the rate of change of prices continued through 2017 at the same rate as from 2004 to 2014. What outlay level in 2017 would provide the same real level as in 2014?

Reference no: EM132282639

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