Important issues in macroeconomics What is the government budget deficit?How does it affect the economy? Why does the U.S.have such a huge trade deficit? Why are so many countries poor? What policies might help them grow out of poverty? CHAPTER 1 The Science of Macroeconomics slide 4CHAPTER 1 The Science of Macroeconomics slide 4 Important issues in macroeconomics ▪ What is the government budget deficit? How does it affect the economy? ▪ Why does the U.S. have such a huge trade deficit? ▪ Why are so many countries poor? What policies might help them grow out of poverty? 1