The following is budget information for a hypothetical economy. All data are in billions of dollars. Refer to the above table. In which year is there a balanced budget?

Question

The following is budget information for a hypothetical economy. All data are in billions of dollars.  Refer to the above table. In which year is there a balanced budget?

Quizplus · Accepted Answer

A balanced budget occurs when total government spending (outlays) equals total government revenue (receipts). In Year 2, outlays and receipts are both $130 billion, resulting in a balanced budget.

The Following Is Budget Information for a Hypothetical Economy