Suppose the government is faced with a budget deficit of $50 billion. Explain why a cut in spending by precisely this amount may not balance the budget. What are the implications for policy if the goal is to balance the budget?

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The Answer of Suppose the government is faced with a budget deficit of $50 billion. Explain why a cut in spending by precisely this amount may not balance the budget. What are the implications for policy if the goal is to balance the budget?

Suppose the Government Is Faced with a Budget Deficit of $50