Describe how a budget deficit arises and explain the corresponding action typically taken by a government in this type of circumstance. Discuss the major categories that the U.S. government spends its tax revenue on and indicate what percentage of tax revenue is spent on these categories on an annual basis. please answer shortly

Describe how a budget deficit arises and explain the corresponding action typically taken by a government in this type of circumstance. Discuss the major categories that the U.S. government spends its tax revenue on and indicate what percentage of tax revenue is spent on these categories on an annual basis. please answer shortly

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.

Question

Describe how a budget deficit arises and
explain the corresponding action typically
taken by a government in this type of
circumstance. Discuss the major categories
that the U.S. government spends its tax
revenue on and indicate what percentage of
tax revenue is spent on these categories on
an annual basis.
please answer shortly

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