DearEconomist:Congress is about to consider the president's request tocut all taxes by 10 percent. Before deciding whether to endorse the request, my committee would like your analysis. Specifically, we are concerned about the short- and long-term impacts on the economy as well as the government's deficit and debt.

In this portionwe explore elements you should include in your response to the Committee.

Briefly discuss the impacts of running large budget deficits on the economy