Business economists have clear ideas on how to cut the huge federal deficit.

In a recent survey of 250 members of the National Assocation for Business Economists, 56 percent said Washington should cut spending and reign in the cost of Medicare and Medicaid.

More than a third of the members favor equal parts spending cut and tax increases.

Nearly 25 percent recommend overhauling the tax system and simplifying tax rates and exemptions.

About 15 percent said the government should enact tough spending caps and cut discretionary spending.

More than 70 percent of the people that responded said they expect U.S. fiscal policy to be more restrictive over the next two years.

The latest survey by the NABE was conducted in the two weeks ending Aug. 2.

The survey comes weeks after the gridlock between Democrats and Republicans ended with an agreement for spending cuts and raising the US's $14.3 trillion debt ceiling.

Obama has committed to cut spending by more than $2 trillion over the next 10 years.