If tax revenues equal 25% of total output and government expenditures equal 20% of total output,then there is a

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Quizplus · Accepted Answer

If tax revenues are greater than government expenditures, it creates a budget surplus. In this case, tax revenues are 25% of total output and government expenditures are only 20% of total output, which means the government is taking in more money than it is spending. This creates a surplus, which can be used to pay off debt or invest in other areas.

If Tax Revenues Equal 25% of Total Output and Government