QUESTION 15 Answer the question using the following budget iformation for a bypo

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QUESTION 15 Answer the question using the following budget iformation for a bypothetical economy, Asoumo that al budget surplusse are used to pay down the publc debe Government -Spending-Tax Revenues GDP Year 1 - _ $450 Year 2500 600 640 680 600 s425 450 500 620 580 620 s2,000 3,000 4,000 5,000 4,800 5,000 Year 3 Year 4 Year 5 Year 6 Refer to the above data. As a percentage of GDP, the: O budget deficit was 3.9 percent in year 4. O budget surplus was less than 1 percent in year 6. O public debt was 3 percent in year 6 Opublic debt was 12.5 percent in year 1 Click Save and Submit to save and submit.Click Save All Answers to save all ansoers Save All Answers Close Window

Explanation / Answer

Answer.) Budget Surplus was less than 1 percent in year 6

Budget Surplus in year 6 = $20

GDP in year 6 = $5000

share = ($20 x 100 ) / $5000 = 0.4

Therefore Budget surplus was 0.4% in year 6.

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