-Using the data in the above table, if exports = $1,150 billion and the private sector runs a surplus of $300 billion, the government sector will run
A) a surplus of $150 billion.
B) a surplus of $450 billion.
C) a deficit of $150 billion.
D) a deficit of $450 billion.

Question

-Using the data in the above table, if exports = $1,150 billion and the private sector runs a surplus of $300 billion, the government sector will run
A) a surplus of $150 billion. 
B) a surplus of $450 billion. 
C) a deficit of $150 billion. 
D) a deficit of $450 billion.

Quizplus · Accepted Answer

Given that the private sector runs a surplus of $300 billion and exports are $1,150 billion, the government sector must run a deficit to balance the equation. The national accounting identity states that (Exports - Imports) + (Private sector surplus) + (Government sector balance) = 0. Since the private sector surplus is $300 billion and there's no information on imports, the government sector's balance must offset the private sector surplus, leading to a deficit of $300 billion, not directly matching any of the provided options. However, without the imports data, the precise calculation is incomplete. Assuming a misunderstanding in the explanation due to missing data (like imports or the assumption that exports equal imports for a balanced trade), the closest logical answer based on the provided choices would be a deficit, with C) being the only deficit option that could be chosen despite the numerical discrepancy.

-Using the Data in the Above Table, If Exports =