When government spending is equal to the tax revenues during a specific time period, this is known as a
A) government budget deficit.
B) government budget surplus.
C) balanced budget.
D) public debt.

Question

Quizplus · Accepted Answer

When government spending is equal to tax revenues, it is referred to as a balanced budget. There is no deficit or surplus as the amount of money coming in is exactly equal to the amount going out. A government budget deficit occurs when spending exceeds tax revenues, while a government budget surplus occurs when tax revenues exceed spending. Public debt is the accumulation of past deficits, or the total amount owed by the government.

When Government Spending Is Equal to the Tax Revenues During