Percentage Point Changes in US Federal Outlays Relative to GDP by Congressional Status

Period Congressional status Change in total outlays Change in nondefense outlays Change in defense outlays

1981-1988 divided -0.4 -1.3 0.9

1975-1976 divided 2.7 3.0 -0.3

1977-1980 undivided 0.3 0.6 -0.3

1964-1968 undivided 1.9 1.4 0.5

1969-1974 divided -1.8 2.1 -3.9

Economist Steve H. Hanke has shown that divided US Congresses--which occur when one party holds the majority in the House of Representatives and another holds the majority in the Senate--tend to accompany reductions in total federal outlays (spending) relative to gross domestic product (GDP), which Hanke interprets to reflect decreases in government size. Hanke calculated the percentage point change in total outlays (encompassing nondefense and defense outlays) for consecutive US Congresses. Hanke has pointed to his calculations as evidence that a divided Congress may be a "necessary but not sufficient condition" for a decrease in government size to occur.

Which choice best describes data from the table that support the underlined claim?

Question

Percentage Point Changes in US Federal Outlays Relative to GDP by Congressional Status
Period	Congressional status	Change in total outlays	Change in nondefense outlays	Change in defense outlays
1981-1988	divided	-0.4	-1.3	0.9
	divided	-0.4	-1.3	0.9
1975-1976	divided	2.7	3.0	-0.3
	divided	2.7	3.0	-0.3
1977-1980	undivided	0.3	0.6	-0.3
	undivided	0.3	0.6	-0.3
1964-1968	undivided	1.9	1.4	0.5
	undivided	1.9	1.4	0.5
1969-1974	divided	-1.8	2.1	-3.9
	divided	-1.8	2.1	-3.9

Economist Steve H. Hanke has shown that divided US Congresses--which occur when one party holds the majority in the House of Representatives and another holds the majority in the Senate--tend to accompany reductions in total federal outlays (spending) relative to gross domestic product (GDP), which Hanke interprets to reflect decreases in government size. Hanke calculated the percentage point change in total outlays (encompassing nondefense and defense outlays) for consecutive US Congresses. Hanke has pointed to his calculations as evidence that a divided Congress may be a "necessary but not sufficient condition" for a decrease in government size to occur.

Which choice best describes data from the table that support the underlined claim?

Accepted Answer

All the periods of divided Congresses except one were associated with reductions in total outlays, whereas the periods of undivided Congresses were associated with increases in total outlays.

Answer

The periods of undivided Congresses were associated with increases in nondefense outlays, whereas all the periods of divided Congresses except one were associated with reductions in defense outlays.

Answer

All the periods of divided Congresses were associated with reductions in total outlays, although two periods were also associated with increases in nondefense outlays.

Answer

The periods of undivided Congresses were associated with increases in total outlays, whereas all the periods of divided Congresses were associated with reductions in either nondefense outlays or defense outlays.