The federal budget deficits of the 1980s

A) are about the same as those of earlier decades.
B) caused the government debt to increase in absolute terms but not as a percent of GDP.
C) were due to the persistent recession that occurred throughout the 1980s.
D) were caused by rising expenditures and tax cuts.

Federal Budget Deficits

The shortfall where the government's expenditures exceed its revenue within a fiscal year.

Expenditures

The act of spending funds or resources, typically referring to the outflow of money by a government, organization, or individual for various purposes.

Tax Cuts

Reductions in the amount of taxes imposed by a government on individuals or entities.