Government debt (or national debt) has accumulated due to several years of tax cuts and spending increase. Lastly, there has been trade deficit for over five years.

Explain your policy recommendations based on macroeconomic theory.

Utilization will always be lower than efficiency because: a. effective capacity is greater than design capacityb. expected output is less than actual output.c. effective capacity equals design capacity.d. effective capacity is less than design capacity.e. expected output is less than rated capacity.