Scenario 8-2

question 31

Multiple Choice

Scenario 8-2. Assume the following information for an imaginary, closed economy.
GDP = $200,000; consumption = $120,000;
government purchases = $35,000; and taxes = $25,000.
-Refer to Scenario 8-2. For this economy, public saving is equal to

• A) $-10,000 and the government is running a budget deficit of $10,000.
• B) $-10,000 and the government is running a budget surplus of $10,000.
• C) $10,000 and the government is running a budget deficit of $10,000.
• D) $10,000 and the government is running a budget surplus of $10,000.

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