Solved: How does the federal deficit affect gdp and the multiplier, Macroeconomics

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How does the federal deficit affect gdp and the multiplier

Question:

To reduce the federal deficit, the government would have to cut back on government purchase, transfer payments, and/or increase taxes. How does the federal deficit affect GDP and the multiplier? Would an attempt to reduce the budget deficit not increase it? Does today's deficit not create tomorrow's surplus?

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Macroeconomics: How does the federal deficit affect gdp and the multiplier

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