Problem
Suppose government purchases amount to $2.5 trillion, transfer payments amount to $1 trillion, net interest payments are $0.5 trillion and tax revenue is valued at $3 trillion.
a) Calculate the government deficit.
b) Calculate the primary deficit.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.