What is the correct calculation to determine a budget surplus or deficit?

A. Income - Expenses
B. Income - Total Debt
C. Total Debt - Expenses
D. Expenses + Income



Answer :

Final answer:

To determine a budget surplus or deficit, subtract government expenditures from revenues. Surplus happens when revenues surpass expenditures, and deficit occurs when expenditures exceed revenues.


Explanation:

To calculate a budget surplus or deficit, you need to find the difference between government revenues and expenditures. A budget surplus occurs when government revenues exceed expenditures, while a budget deficit occurs when expenditures exceed revenues. The primary deficit excludes interest payments on the debt.


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