You Have Two Sets of Estimates of National Account Numbers

question 162

Multiple Choice

You have two sets of estimates of national account numbers for a closed economy for next year. In the first set, government expenditures will be $30 billion, transfer payments will be $10 billion, and taxes will be $50 billion. Under the second set, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 billion, and investment will be $30 billion. Based on these numbers, what are the respective estimated results?

• A) $20 billion surplus and a $20 billion surplus
• B) $20 billion surplus and a $20 billion deficit
• C) $10 billion surplus and a $20 billion surplus
• D) $10 billion surplus and a $20 billion deficit

---

Definitions:

Iron Hand

Governing or controlling with strictness and often severity, showing little compassion or flexibility.

Unconventional Strategies

Novel or out-of-the-ordinary tactics employed to achieve goals, often by circumventing traditional methods or thinking.

Internal Conflict

Psychological struggle within an individual arising from opposing demands or impulses.

Constituents

Members or components of a group or organization, often referred to as stakeholders or the electorate in political contexts.