Since you are just finishing the module that covers fiscal policy and the federal deficit, it would be a good time to discuss the economics of President Trump’s budget which was proposed this week. Before we get into the economics of the budget, we need to review a few basic things about the U.S. budget process which may not be familiar to all of you.1. The federal budget is proposed each year by the president around this time for the next fiscal year, which begins on Oct. 1, 2017 and goes to Sept. 30, 2018. The budget is made up spending by the federal government (G) and tax revenues (T). If G = T then the budget is balanced; when G>T then we have a deficit; when G

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