Suppose the government spends $3 trillion and collects $2 trillion in taxes this year.The ________ is equal to __________.

Question

Quizplus · Accepted Answer

The difference between government spending and tax revenues is known as the deficit. In this case, the deficit is equal to $1 trillion ($3 trillion - $2 trillion). The debt refers to the accumulation of deficits over time, so it cannot be determined solely using the information provided in the question.

Suppose the Government Spends $3 Trillion and Collects $2 Trillion