Suppose a government's tax revenues are $4 billion, and government purchases of goods and services are $3. If transfer payments are $2.5 billion, the government's budget deficit is $2.5 billion.

Name: Suppose a government's tax revenues are $4 billion, and government purchases of goods and services are $3. If transfer payments are $2.5 billion, the government's budget deficit is $2.5 billion.
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Question

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Budget deficit is $1.5 billion (3 billion + 2.5 billion - 4 billion).

Suppose a Government's Tax Revenues Are $4 Billion, and Government