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In the Media, the Deficit Is Often Defined as Total

Question 46

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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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( G + transfer payments) - gross tax rev...

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