Consider the government's budget balance.Suppose G = 300 and the government's net tax revenue is 0.3Y.The government budget is in surplus only when Y is
A)less than 350.
B)less than 1000.
C)greater than 1000.
D)greater than 2500.
E)greater than 3000.

Question

Quizplus · Accepted Answer

The government budget is in surplus when its revenue exceeds its spending. Here, the government's spending (G) is 300, and its net tax revenue is 0.3Y. For a budget surplus, 0.3Y > 300. Solving for Y gives Y > 1000.

Consider the Government's Budget Balance