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Answer the Question Using the Following Budget Information for a Hypothetical

Question 100

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Answer the question using the following budget information for a hypothetical economy.Assume that all budget surpluses are used to pay down the public debt. Year 1Year 2Year 3Year 4Year 5Year 6GovernmentSpending$450500600640680600Tax Revenues$425450500620580620 GDP $2,0003,0004,0005,0004,8005,000\begin{array}{c}\begin{array}{lll}\\\\\text {Year 1}\\\text {Year 2}\\\text {Year 3}\\\text {Year 4}\\\text {Year 5}\\\text {Year 6}\end{array}\begin{array}{c}\text {Government}\\\underline{\text {Spending}}\\ \$ 450 \\500\\600\\640\\680\\600\end{array}\begin{array}{c}\\\underline{\text {Tax Revenues}}\\\$ 425 \\450 \\500 \\620 \\580 \\620\end{array}\begin{array}{c}\\\underline{\text { GDP }} \\ \$ 2,000 \\3,000 \\4,000 \\5,000 \\4,800 \\5,000\end{array}\end{array}
Refer to the data.The public debt declined in year:


A) 6.
B) 5.
C) 4.
D) 3.

Correct Answer:

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