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Again, please consider the closed economy of Economia, which has the following information: $6500 consumption $7500...

Again, please consider the closed economy of Economia, which has the following information:

  • $6500 consumption
  • $7500 government spending (NOT including transfer payments)
  • $10,000 overall taxes
  • $2000 transfer payments
  • $18,000 total income (output)

Based on your answer to the last question, the government brings in ______ in net tax revenues than it spends and runs a budget _________.

Group of answer choices

more; deficit

more; surplus

less; deficit

less; surplus

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Answer #1

total government expenditure in the economy is 9500 and taxes are 10,000 so the government is bringing in more in net tax revenue and running a budge surplus.

the answer is "B".

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