How is the public debt calculated?
A) by subtracting the government's total liabilities from its total assets
B) by cumulating the annual government purchases over time
C) by subtracting current government spending from current government tax revenues
D) by cumulating the annual difference between tax revenues and government spending over the years

Question

Quizplus · Accepted Answer

The public debt is calculated by cumulating the annual difference between tax revenues and government spending over the years. This is also known as the budget deficit, which is the amount by which government spending exceeds government revenue in a given year. The cumulative deficits over time add up to the total public debt.

How Is the Public Debt Calculated