which of the following best describes the circumstance in which a government will run a budget surplus…

which of the following best describes the circumstance in which a government will run a budget surplus? choose 1 answer: a tax revenues are more than the sum of the government spending (g) component of real gdp and transfer payments b when a government runs a high debt to income ratio c when a government engages in expansionary fiscal policy d the accumulation of budget shortfalls over time e tax revenues are less than the sum of the government spending (g) component of real gdp and transfer payments

which of the following best describes the circumstance in which a government will run a budget surplus? choose 1 answer: a tax revenues are more than the sum of the government spending (g) component of real gdp and transfer payments b when a government runs a high debt to income ratio c when a government engages in expansionary fiscal policy d the accumulation of budget shortfalls over time e tax revenues are less than the sum of the government spending (g) component of real gdp and transfer payments

Answer

Brief Explanations:

A budget surplus occurs when a government's tax revenues exceed its total spending, which includes government - spending on goods and services (part of GDP) and transfer payments. High debt - to - income ratio relates to debt levels, expansionary fiscal policy usually leads to more spending and potentially deficits, and accumulation of budget shortfalls leads to debt. When tax revenues are less than spending, there is a deficit.

Answer:

A. Tax revenues are more than the sum of the government spending (G) component of real GDP and transfer payments