A smaller deficit than the current deficit is the ideal answer to fill the gap. A deficit occurs when expenditures are greater than revenues, so in an economy with a surplus, revenues will be larger than expenses, so the standardized employment deficit will be smaller than the current one, because an economy with a GDP that exceeds its potential , is an economy that is expanding, production is larger, which consequently increases the employment rate and decreases the deficit.
Because during the year Shady had taxes expenses for $80 million but then Shady cancelled $2 million of the Income Tax Payable account, which decreased from $14 million to $12 million.
