Scenario 26-1.Assume the following information for an imaginary,closed economy.
GDP = $100,000;taxes = $22,000;government purchases = $25,000;national
saving = $15,000.
-Refer to Scenario 26-1.This economy's government is running a
A)budget surplus of $3,000.
B)budget surplus of $12,000.
C)budget deficit of $3,000.
D)budget deficit of $12,000.

Question

Quizplus · Accepted Answer

The government budget deficit is calculated as government purchases minus taxes. Here, it is $25,000 - $22,000 = $3,000.