Question: A state legislature is debating two proposals for eliminating the annual budget deficits after 10 years. The rate of decrease of the deficits for each

A state legislature is debating two proposals for eliminating the annual budget deficits after 10 years. The rate of decrease of the deficits for each proposal is shown in the figure.

Deficit (in billions of dollars) 60 50 40 D 20 10- Proposal

(a) What does the area between the two curves represent?
(b) From the viewpoint of minimizing the cumulative state deficit, which is the better proposal? Explain.

Deficit (in billions of dollars) 60 50 40 D 20 10- Proposal 2 Proposal 1 H 24 6 8 10 Year

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