The table below presents the tax revenue and spending for the government over five years. Government Revenue
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Question:
The table below presents the tax revenue and spending for the government over five years.
Government Revenue and Spending
Year | Tax Revenue (billions of dollars) | Spending (billions of dollars) | Budget Amount (billions of dollars) | Budget |
1 | $200 | $250 | $ | (Click to select) Surplus Deficit Balanced |
2 | 400 | 350 | (Click to select) Surplus Deficit Balanced | |
3 | 300 | 550 | (Click to select) Surplus Deficit Balanced | |
4 | 600 | 400 | (Click to select) Balanced Deficit Surplus | |
5 | 400 | 400 | (Click to select) Surplus Deficit Balanced |
Instructions:
Enter your answer as a whole number. If you are entering a negative number include a minus sign.
a. Under the "Budget Amount" column calculate the annual budget outcome.
b. Under the "Budget" column determine whether the annual budget outcome is a budget surplus, budget deficit, or a balanced budget.
c. Suppose the government has no debt entering into year 1. At the end of year 5, what is the government's level of debt? Enter your answer as a positive value.
Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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