Scenario 13-1. Assume the following information for an imaginary, closed economy. $$\begin{array} { l }
\text { GDP } = \$ 120,000 ; \text { consumption } = \$ 70,000 ; \text { private savng } = \$ 9,000 \text {; } \
\text { national saving } = \$ 12,000
\end{array}$$
-Refer to Scenario 13-1. This economy's government is running a
A)budget surplus of $3,000.
B)budget surplus of $6,000.
C)budget deficit of $3,000.
D)budget deficit of $6,000.

Question

Scenario 13-1. Assume the following information for an imaginary, closed economy. $$\begin{array} { l } 
\text { GDP } = \$ 120,000 ; \text { consumption } = \$ 70,000 ; \text { private savng } = \$ 9,000 \text {; } \
\text { national saving } = \$ 12,000
\end{array}$$
-Refer to Scenario 13-1. This economy's government is running a
A)budget surplus of $3,000.
B)budget surplus of $6,000.
C)budget deficit of $3,000.
D)budget deficit of $6,000.

Quizplus · Accepted Answer

The government budget surplus is calculated as national saving minus private saving, which is $12,000 - $9,000 = $3,000.

Scenario 13-1 -Refer to Scenario 13-1