q2,3

2.
a. In order to determine the change for federal defense and non-defense outlays in current dollars from the year 2000 till 2014 with the base year being 2009 (at 1.00), following will be the calculation used for finding the defense and non-defense outlays:
Equation: [(2014 ÷ 2000) – 2009] x 100
Defense outlay change = [(603457 ÷ 294363) -1] x 100 = 105.0
Non-defense outlay change = [(2902632 ÷ 1494587) – 1] x 100 = 94.2
The total change for defense outlay is 105. On the other hand, the change for non-defense outlay is 94.2.
To determine the price component for calculating both defense and non-defense below equation will be used:
Equation: [(2014 ÷ 2000) – 1] x 100
Defense prices component = [(1.0510 ÷ 0.7235) – 1] x 100 = 45.3
Non-defense price component = [(1.0893 ÷ 0.8134) – 1] x 100 = 33.9
This shows a difference of 11.4% in the price component between the defense and the non-defense...