Question

The Federal Budget Deficit The U.S. federal government has run a budget deficit for almost the entire past hal-century. The graph below plots federal revenue against outlays as a percentage of GDP, a measurement that stays consistent as the size of the economy changes. Note that the deficit is particularly Ukely to increase during recessions, as tax revenue declines and spending often Jumps - Outlays a % of GDP – Tax revenue as % of GDP Period of recession 30% — . The deficits during and after the Great Recession are the largest since World War II. long-ruang 10.40 20%- Long-run wang 1.50€ N The govemment was reasonably close to balancing the budget from 1960 1974. 10% — The only budget surpluses in recent times came between 1998 and 2001 1980 1980 2010 1950 1970 SOUER U.S. Office of Management and Budget

Since 1990, in how many years has the U.S. government had a budget surplus?

Choose one:

A. 0

B. 3

C. 4

D. 18

Answer 1

Option C. 4

Explanation: In budget surplus, the government revenue is higher than the government outlays.