Assuming the economy was in equilibrium,use the following information to determine the government's budget deficit. The government's deficit (surplus)was
A) -$0.3 trillion deficit ($0.3 trillion surplus)
B) -$0.2 trillion deficit
C) $0.2 trillion deficit
D) $0.3 trillion deficit
E) $0.5 trillion deficit

Question

Assuming the economy was in equilibrium,use the following information to determine the government's budget deficit.  The government's deficit (surplus)was
A) -$0.3 trillion deficit ($0.3 trillion surplus) 
B) -$0.2 trillion deficit 
C) $0.2 trillion deficit 
D) $0.3 trillion deficit 
E) $0.5 trillion deficit

Quizplus · Accepted Answer

The government's deficit (surplus) can be calculated by subtracting government revenue ($2.8 trillion) from government spending ($3.1 trillion). 
Deficit = Spending - Revenue 
Deficit = $3.1 trillion - $2.8 trillion
Deficit = $0.3 trillion deficit

Assuming the Economy Was in Equilibrium,use the Following Information to Determine