In 2007, Norwayʹs government had revenue of $226.3 billion and expenditures of $158.7 billion. At the same time, GDP totalled $392 billion and government debt was about 67 percent of GDP. In 2007, Norwayʹs government ran a government budget____________ and government debt ____________.

Question

Quizplus · Accepted Answer

A surplus occurs when government revenues exceed expenditures, so in 2007 Norway ran a budget surplus of $67.6 billion ($226.3 billion - $158.7 billion). Government debt being 67 percent of GDP means that it was $262.44 billion ($392 billion x 0.67). Since the government ran a budget surplus, the debt would have decreased.

In 2007, Norwayʹs Government Had Revenue of $226