The government deficit
A) is equal to the government surplus plus taxes minus government spending.
B) is equal to GDP minus GNP.
C) is equal to disposable income plus the current account surplus.
D) is equal to the negative of government saving.
D
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Which of the following is correct?
i. A surplus puts downward pressure on the price of a good. ii. A shortage puts upward pressure on the price of a good. iii. There is no surplus or shortage at equilibrium. A) i and ii B) only iii C) ii and iii D) i and iii E) i, ii, and iii
When the government's outlays exceed its tax revenues, the national debt
A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) grows to finance the budget surplus. D) shrinks thanks to the budget deficit. E) does not change because it has nothing to do with government outlays and tax revenue.