Suppose that the government of Smallville spends $2 trillion in 2020 and receives tax revenues of $1.5 trillion in that same year. Which of the following is TRUE? Smallville has a trade surplus of $0.5 trillion. Smallville has a trade deficit of $0.5 trillion. Smallville has a budget surplus of $0.5 trillion. Smallville has a budget deficit of $0.5 trillion.

Suppose that the government of Smallville spends $2 trillion in 2020 and receives tax revenues of $1.5 trillion in that same year. Which of the following is TRUE? Smallville has a trade surplus of $0.5 trillion. Smallville has a trade deficit of $0.5 trillion. Smallville has a budget surplus of $0.5 trillion. Smallville has a budget deficit of $0.5 trillion.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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