Problem:
Understanding the Deficit When I took office 3 years ago, my Administration was left an annual deficit of $1.3 trillion, or 9.2 percent of GDP, and a projected 10-year deficit of more than $8 trillion. . . . Together with the deficit reduction I signed into law this past year, this [new] Budget will cut the deficit by $4 trillion. -President Barack Obama, 2012 Budget Message of the President What is the purpose of the president's statement? to show how changes in fiscal policy can affect the economy to show the size of the deficit relative to GDP to show how large the national debt was when he took office to show how he plans to reduce the national debt