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Economics: Proposal To Cut The Budget Deficit
Beginning of paper
The federal budget is an explosive problem which if not acted upon soon,
threatens to swallow the entire domestic income. I have placed together
several decisions that create a minimal impact upon the economy, yet reduce
the federal budget deficit by 2/3s. The aggregate demand curve ultimately
will shift, not greatly, to the right as the econom ....
Middle of paper ....aid to a
block grant in states would reduce the deficit by 54 billion, yet decrease
the economy. These tax increases will reduce the deficit by 223 billion,
and through the net tax multiplier (mpc/1-mpc while mpc = .25) the economy
will shrink at around 70 billion.
My increased spending shall position the aggregate demand curve back to
its or.... |
Word count: 419 |
Page count: 2 |
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