Answer the following questions using any tools at your disposal. More credit will be given for answers that use the graphical tools presented in class, along with a “story.” A. The federal government ran a budget surplus in the late 1990 and in the year 2000 but has since returned to running a budget deficit. 1. Explain why reducing the budget deficit can cause short-term pain in the form of lower employment, higher unemployment, and a recession.

Answer the following questions using any tools at your disposal. More credit will be given for answers that use the graphical tools presented in class, along with a “story.” A. The federal government ran a budget surplus in the late 1990 and in the year 2000 but has since returned to running a budget deficit. 1. Explain why reducing the budget deficit can cause short-term pain in the form of lower employment, higher unemployment, and a recession.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Federal Budgets And Public Policy

Section: Chapter Questions

Problem 4.9P

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