If Government Has No Debt Initially but Then Has Annual

question 56

Multiple Choice

If government has no debt initially but then has annual revenues of $1.5 billion for 10 years and annual expenditures of $1.6 billion for 10 years, then the government has a:

• A)deficit of $100 million per year and a debt of $1 billion.
• B)surplus of $100 million per year and a debt of $1 billion.
• C)deficit of $100 million and a debt of $1 billion per year.
• D)surplus of $100 million and a debt of $1 billion per year.

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Definitions:

Average Workweek

The average number of hours worked per week by employees in a specific sector or economy.

Natural Rate

The long-term rate of unemployment around which the job market is in balance, where all those willing to work at prevailing wage rates can find employment.

Policymakers

Individuals or groups responsible for making decisions and creating policies for political, economic, or social systems.

Natural Rate

Often referred to in the context of unemployment, it is the long-term rate of unemployment that an economy experiences even when it is operating at a full capacity.