A federal budget surplus occurs when
A)there is deflation
B)federal government net taxes exceed purchases
C)there is inflation
D)aggregate demand is greater than aggregate supply
E)aggregate supply is greater than aggregate demand

Question

Quizplus · Accepted Answer

A federal budget surplus occurs when the federal government's net taxes exceed its purchases. This means that the government is taking in more money than it is spending, resulting in a surplus. This surplus can be used to pay down debt, invest in infrastructure, or even return money to taxpayers through tax cuts or rebates. The other options (deflation, inflation, aggregate demand being greater than aggregate supply, and vice versa) are not directly related to the concept of a federal budget surplus.

A Federal Budget Surplus Occurs When