An economy's total government debt at the end of 2017 is $10 trillion. In 2018, the government collects $2 trillion in tax revenue. If the government debt at the end of 2018 is $11 trillion, then how much did the government spend in 2018?

Question

Quizplus · Accepted Answer

The government's debt increased by $1 trillion from $10 trillion to $11 trillion. This means the government spent $1 trillion more than it collected in taxes ($2 trillion). Therefore, the government must have spent $3 trillion in 2018.

An Economy's Total Government Debt at the End of 2017