Final answer:
With 7 trillion in revenue and 6 trillion in expenditures, the US government would have a budget surplus of 1 trillion dollars. This contrasts with the frequent budget deficits faced in the past, where government expenditures exceeded revenues, leading to increases in national debt.
Step-by-step explanation:
If the US government has 7 trillion in revenue and 6 trillion in expenditures, then it means the government has a budget surplus of 1 trillion dollars. A budget surplus occurs when the government's revenue exceeds its expenditures within a given fiscal year.
Conversely, a budget deficit happens when expenditures are greater than the revenue, and a balanced budget is when revenues and expenditures are equal.
Budget = Revenue - Expenditures
Budget = $7 trillion - $6 trillion
Budget = $1 trillion
Therefore, the budget of the US government is $1 trillion.
The scenario provided represents a healthy fiscal situation where the government is bringing in more money than it is spending. This surplus could be utilized in various ways, such as paying down existing government debt, funding new programs, or saving for future needs. Historical context shows that budget surpluses are relatively rare, with the US often running a deficit due to more expenditures than revenue.