Scenario 18-1.Assume the following information for an imaginary,closed economy.

-Refer to Scenario 18-1.This economy's government is running a
A) budget surplus of $3,000.
B) budget surplus of $6,000.
C) budget deficit of $3,000.
D) budget deficit of $6,000.

Question

Scenario 18-1.Assume the following information for an imaginary,closed economy.
 
-Refer to Scenario 18-1.This economy's government is running a
A) budget surplus of $3,000. 
B) budget surplus of $6,000. 
C) budget deficit of $3,000. 
D) budget deficit of $6,000.

Quizplus · Accepted Answer

The government's budget surplus is equal to the difference between its revenue and its expenditure. In this case, the government's revenue is $12,000 and its expenditure is $9,000. Therefore, the government's budget surplus is $3,000.