Final answer:
The Soviet Union's government deficit in the 1980s was not covered just by taxes; governments typically use spending cuts, tax increases, or borrowing through government bonds to manage deficits.
Step-by-step explanation:
In the 1980s, the Soviet Union's government deficit was not specifically covered by either direct or indirect taxes. Instead, facing a budget deficit, governments generally have a few methods to bridge the gap between tax revenue and expenditure. This can include reducing spending, increasing taxes, or borrowing money through the issuance of government bonds. In the case of the United States, during the Reagan era, the government ran large deficits due to tax cuts and increased military spending. To manage these deficits, the government later increased taxes and also borrowed funds by selling Treasury bonds, notes, and bills. The deficit during the Reagan administration was not solely managed by adjustments in tax; it was also addressed through borrowing.