When analyzing the impact of a budget deficit, an economist will focus on

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When analyzing the impact of a budget deficit, an economist should consider the ratio of the deficit to GDP, as this gives an idea of the overall impact on the economy, which includes the borrowing but also includes the economic output of the country. Additionally, the economist should consider whether the borrowed money is being used for investments, which can have long-term positive effects on the economy.

When Analyzing the Impact of a Budget Deficit, an Economist