The deficit can be defined in simple terms as
A)tax receipts − government expenditures + transfers.
B)tax receipts + government expenditures + transfers.
C)government expenditures + transfers − tax receipts.
D)government expenditures − transfers − tax receipts.

Question

Quizplus · Accepted Answer

The deficit is defined as the difference between government expenditures and tax receipts, but transfers (such as social security, Medicare, and Medicaid) also factor into the calculation. Therefore, the correct formula for the deficit is government expenditures + transfers - tax receipts, as given in choice C.

The Deficit Can Be Defined in Simple Terms as