You Have Some Estimates of National Accounts Numbers for a Closed

question 114

Multiple Choice

You have some estimates of national accounts numbers for a closed economy for the coming year. Under one set of expectations, government purchases will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Under another set of expectations, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 million, and investment will be $40 billion. Based on these numbers in the first case there should be a

• A)$15 billion surplus, and in the second case a $10 billion surplus.
• B)$15 billion surplus, and in the second case a $10 billion deficit.
• C)$5 billion surplus, and in the second case a $10 billion surplus.
• D)$5 billion surplus, and in the second case a $10 billion deficit.