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Suppose the GDP is given by the following: C 500 0.75(Yd) Lp 375 G=200 T 400 Is the government running a surplus or a deficit
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Answer #1

Budget deficit occurs when government expenditure is larger than the government revenue. While in case if surplus, government expenditure is less than it's revenue.

Government revenue: 400

Government expenditure : 200.

Surplus: 400 - 200

= 200

Answer : B

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