In the media, the deficit is often defined as total outlays (spending plus transfers) minus total tax revenue. Economists, however, like to define the deficit as "G - T," where "G" includes only government purchases of goods and services, and "T" is net taxes. Prove that these two definitions are actually equivalent.

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The Answer of In the media, the deficit is often defined as total outlays (spending plus transfers) minus total tax revenue. Economists, however, like to define the deficit as "G - T," where "G" includes only government purchases of goods and services, and "T" is net taxes. Prove that these two definitions are actually equivalent.

In the Media, the Deficit Is Often Defined as Total