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in your opinion, what type of government budget deficit do you think the US government is...

in your opinion, what type of government budget deficit do you think the US government is running? explain your reasoning. provide recommendations for relief from this issue.

cyclical and structual deficit are the two types of government deficit

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Answer #1

Budget deficit occurs when government revenue is less than it's expenditure. Deficit could be of two types: cyclical deficit occurs when economy faces recession while structural deficit takes place during the full employment.

Presently, US economy is facing situation of full employment. Thus current deficit is called structural deficit.

Government needs to rationalize it's social programs and expenditure on military and unproductive aids must be reduced. This is right time to reduce the deficit else if crisis hits economy, deficit will spiral out. Unnecessary tax rebates and concessions must be reduced or done away with.

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