alleryStart learning →When the government receives more money in taxes than it spends in a year, it runs a:
ATrade deficit
BBudget surplus
CBudget deficit
DBalanced budget
Answer & Solution
Correct answer: B. Budget surplus
1. A surplus is the mirror image of a deficit.
2. Spending more than it receives gives a budget deficit.
3. When the government receives more money in taxes than it spends, it runs a budget surplus.
4. Equal spending and taxes give a balanced budget.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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