The Table Contains Budget Information for a Hypothetical Economy

question 157

Multiple Choice

$$\begin{array} { | c | c | c | c | } \hline & \begin{array} { c } \text { Government } \\\text { Spending }\end{array} & \text { Tax Revenues } & \text { GDP } \\\hline \text { Year 1 } & \$ 800 & \$ 825 & \$ 4,000 \\\hline \text { Year 2 } & 850 & 850 & 4,200 \\\hline \text { Year 3 } & 900 & 875 & 4,350 \\\hline \text { Year 4 } & 950 & 900 & 4,500 \\\hline \text { Year 5 } & 1,000 & 925 & 4,600 \\\hline\end{array}$$ The table contains budget information for a hypothetical economy. All data are in billions of dollars. The budget de?cit was $75 billion in

• A) Year 2.
• B) Year 3.
• C) Year 4.
• D) Year 5.

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Definitions:

Units

In business, refers to the individual items or a standardized measurement of quantity that can be counted to assess inventory, production, or sales.

Product

A good, idea, method, information, service, or object created as a result of a process and serves a need or satisfies a want.

Domestically Produced

Goods manufactured or produced within a country's borders, as opposed to imported from another country.

International Markets

Markets that span across different countries and cultures, involving the buying and selling of goods and services globally.