Use the figure below to answer the following questions.
Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.If real GDP equals $550 billion, the budget is
A)in balance.
B)a deficit of $40 billion.
C)a deficit of $60 billion.
D)a surplus of $60 billion.
E)a surplus of $40 billion.

Question

Use the figure below to answer the following questions.
  Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.If real GDP equals $550 billion, the budget is
A)in balance. 
B)a deficit of $40 billion. 
C)a deficit of $60 billion. 
D)a surplus of $60 billion. 
E)a surplus of $40 billion.

Quizplus · Accepted Answer

The deficit equals the difference between outlays and revenues, which is $550 billion - $610 billion = -$60 billion. Therefore, the budget is in a deficit of $60 billion.

Use the Figure Below to Answer the Following Questions