A balanced budget is present when
A) the economy is at full employment.
B) the actual level of aggregate spending equals the planned level of spending.
C) public sector spending equals private sector spending.
D) government revenues equal government expenditures.

Question

Quizplus · Accepted Answer

A balanced budget is present when government revenues equal government expenditures. This means that there is no deficit or surplus in the government's budget. It does not necessarily mean that the economy is at full employment or that public sector spending equals private sector spending. It simply means that the government is not spending more money than it is collecting in revenue.

A Balanced Budget Is Present When