Use the Following to Answer Questions

question 82

Multiple Choice

Use the following to answer questions:
Scenario: Closed Economy S = I
GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion.
-(Scenario: Closed Economy S = I) Look at the scenario Closed Economy S = I. What is the government budget balance?

• A)a surplus of $1.5 trillion
• B)a deficit of $1.5 trillion
• C)a surplus of $0.5 trillion
• D)a deficit of $0.5 trillion

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Definitions:

Harry S. Truman

The 33rd President of the United States, serving from 1945 to 1953, known for implementing the Marshall Plan to rebuild Europe’s economy after World War II, among other things.

George F. Kennan

An American diplomat and historian, best known for his role in defining the U.S. foreign policy approach of containment during the Cold War.

Western Europe

A region comprising the western part of Europe, often including countries such as France, Germany, the United Kingdom, and Italy, known for its developed economies and democratic governments.

Soviet Union

A former federal socialist state in northern Eurasia that existed from 1922 to 1991, known for its communist government and major role in world politics during the 20th century.