Assume that tax revenue is represented by the following function: T = - 200 + .25Y, where the first term represents net taxes and Y represents GDP. Assume furthermore that government spending is $400 billion and the economy is in equilibrium at $2000 billion. Calculate the value of the budget deficit.

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The Answer of Assume that tax revenue is represented by the following function: T = - 200 + .25Y, where the first term represents net taxes and Y represents GDP. Assume furthermore that government spending is $400 billion and the economy is in equilibrium at $2000 billion. Calculate the value of the budget deficit.

Assume That Tax Revenue Is Represented by the Following Function