In the long-run model the difference t-g measures the


a. In the long-run model, the difference (T-G) measures the government budget deficit or surplus. Explain the difference between the budget deficit and the trade deficit. What type of policy would reduce a budget deficit? What type of policy would reduce a trade deficit? Base your discussion should on the insights from chapters 3 and 6 of the Mankiw text. b. Look at the historical data for the U.S. budget deficit. Cite your source. For a historical view, consult the table from the Economic Report of the President (https://www.whitehouse.gov/omb/budget/Historicals (Links to an external site.)). Briefly describe the historical trend and the future outlook for the U.S. budget.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: In the long-run model the difference t-g measures the
Reference No:- TGS02221192

Expected delivery within 24 Hours