If the federal government spends 12 percent of GDP and collects revenues of 10 percent GDP, what is the deficit as a percentage of GDP?

Name: If the federal government spends 12 percent of GDP and collects revenues of 10 percent GDP, what is the deficit as a percentage of GDP?
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Question

Quizplus · Accepted Answer

The deficit is the difference between spending and revenues. In this case, the deficit would be 2 percent of GDP (12 percent - 10 percent). Therefore, the correct answer is B) 2 percent.

If the Federal Government Spends 12 Percent of GDP and Collects