Page 106 - Macroeconomics. book docx_Neat

Q8

A budget deficit exists when:

A. Revenue is greater than expenditure

B. Revenue equals expenditure

C. Expenditure is greater than revenue
D. Government stops spending

Answer: C

Q9

A budget surplus occurs when:

A. Government stops taxation

B. Expenditure equals revenue
C. Revenue exceeds expenditure

D. Spending increases rapidly

Answer: C

Q10

During a recession, the government usually:

A. Reduces spending

B. Increases taxes

C. Eliminates public investment
D. Runs a budget deficit

Answer: D

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