High School

Thank you for visiting GDP is 20 trillion If consumption is 14 trillion government spending is 3 trillion taxes are 2 trillion government transfers are 0 exports are 2. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!

GDP is $20 trillion. If consumption is $14 trillion, government spending is $3 trillion, taxes are $2 trillion, government transfers are $0, exports are $2 trillion, and imports are $3 trillion, what is the government budget balance?

Answer :

The government budget balance is in a deficit by $1 trillion since the government spending exceeds taxes earned by the government.

Government Budget Balance refers to the difference of the government outcome and income The government's outcome is represented by government spending or public spending and government's income is the amount of taxes government earned.

When the government spending exceeds the taxes the government earned, the government budget balance would be minus and is in deficit condition. If the government spending is below the taxes level, the the goverment budget balance would be in surplus.

From the case, we know that:

Government spending (S) = $3 trillion

Taxes (T) = $2 trillion

Government Budget Balance = Taxes - Government spending

Government Budget Balance = $2 trillion - $3 trillion

Government Budget Balance = $(1 trillion)

Learn more about Government Budget Balance here: https://brainly.com/question/9409953

#SPJ4

Thank you for reading the article GDP is 20 trillion If consumption is 14 trillion government spending is 3 trillion taxes are 2 trillion government transfers are 0 exports are 2. We hope the information provided is useful and helps you understand this topic better. Feel free to explore more helpful content on our website!

Rewritten by : Jeany

Other Questions