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Federal Budet and Federal Debt

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Why does the budget require a forecast to the economy? Under what circumstances would actual government spending and tax revenue fail to match the budget as approved?

Federal Debt
what has happened to the federal debt since 2008 as measured relative to GDP?

Fiscal Policy:
In the current chapter, it shows that increased government purchases with taxes held constant, can eliminate a recessionary gap. How could a tax cut achieve the same result?

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Solution Preview

The response addresses the query is posted in 439 words with APA References
// For the purpose of Undertaking the country's expenses in the most effective and proficient manner, the government of the country is required to make a specific budget. In this regard, the presented discussion is focused on the factors which are required for framing a budget in the most effective manner. Moreover, the paper also focused on trends of federal debts since 2008//
Answer 1: Forecast of future performance of the economy essentially implies, the forecast of revenue and expenditure of that economy, and the budget is based on the analysis of those revenues and expenditures. The relationship between the economy and budget is such that they influence each other as the declarations in the budget ...

Solution Summary

The expert determines why a budget requires a forecast to the economy. Under what circumstances would an actual government spending and tax revenues fail to match the budget as approved. The response addresses the query is posted in 439 words with APA References.

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