Chapter 16.3, Problem 5R

To determine

To evaluate the process that can reduced deficit by cutting some programs or by increasing taxes by making a list that need to cut and the lists that need to increase taxes.

Explanation of Solution

Cut in programs	Increases in taxes
Reduction in defense spending	Income tax
Changes to Medicare	Corporate tax

Some of the ways that the government can reduce deficit by cutting expenditure in some programs and by increasing some of the selected taxes. If a country has a deficit that grows too rapidly, the government may be forced to adapt policies aimed at sharply reducing the deficit. This reduction in the deficit led to lower inflation, recession and unemployment. Raising national debt.

Economics Concept Introduction

Introduction: A deficit exists if spending exceeds revenue, imports exceed exports, or liabilities exceed assets. A deficit stands for shortfall or loss and is the opposite of a surplus.