Explain the different way to reduce the deficit in the government budg

1.	Explain the different way to reduce the deficit in the government budget
Answer» The obvious way to reduce a budget deficit is to increase tax rates and cut government spending. However, the difficulty is that this fiscal tightening can cause lower economic growth – which in turn can cause a higher cyclical deficit (government get less tax revenue in a recession). The best way to reduce fiscal deficits depends on the situation a country is in.

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