GDP $ 450 $ 425 $ 2,000 500 450 3,000 600 500 4,000 640 620 5,000 5 680 580 4,800 6 600 620 5,000 The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. The public debt declined in year Multiple Choice • 6. . . 5. . 4. • 3. Year 1 2 3 4 LO Government Spending Tax Revenues

GDP $ 450 $ 425 $ 2,000 500 450 3,000 600 500 4,000 640 620 5,000 5 680 580 4,800 6 600 620 5,000 The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. The public debt declined in year Multiple Choice • 6. . . 5. . 4. • 3. Year 1 2 3 4 LO Government Spending Tax Revenues

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Federal Budgets And Public Policy

Section: Chapter Questions

Problem 1.2P

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