The Federal budget deficit is calculated each year by:
A)subtracting government spending from government revenues.
B)subtracting consumption and investment from government spending.
C)adding up consumption, investment, government purchases, and net exports.
D)adding up the difference between government revenues and spending over the years of the nation's existence.

Question

Quizplus · Accepted Answer

The federal budget deficit is calculated by subtracting government spending from government revenues. This means that the amount of money the government spends each year is compared to the amount of money it receives through taxes and other sources, and the difference between those two numbers determines whether there is a budget deficit or surplus.

The Federal Budget Deficit Is Calculated Each Year By