What is the current deficit

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Suppose government expenditures are currently 3000 and tax revenues are currently 2000. Assume tax revenues increase annually by 75+(2/3) (increases in GE - Decrease in I ). Assume I decrease by 1 every time G increase by 1 when the deficit is 1000 or higher and I  decreases by 1 every time G increases by 2 if the deficit is less than 1000 but greater than 500.

What is the current deficit?

What would the deficit be for each of the next 5 years if we held GE constant at 3000?

Reference no: EM132405687

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