Final answer:
Ionia had a budget deficit of $8 billion as the government spent $20 billion while only acquiring $12 billion through an increase in money supply, bond sales, and the sale of a military base. The tax revenue for the year was also $8 billion, calculated by subtracting the other sources of revenue from the total government spending.
Step-by-step explanation:
To determine if Ionia had a budget deficit or surplus, we need to look at its government spending in relation to how much money it acquired through various means. Over the past year, Ionia's money supply increased by $5 billion, it sold $6 billion in bonds, and sold an unused military base for $1 billion. Together, these amount to $12 billion ($5 billion + $6 billion + $1 billion). However, the government spent $20 billion. This means that Ionia had a budget deficit.
To calculate the amount of the budget deficit, we subtract the total revenue ($12 billion) from the government spending ($20 billion), which equals a $8 billion deficit. Therefore, the budget deficit is $8 billion.
The amount of tax revenue for the year can be found by considering that the increase in money supply, the sale of bonds, and the sale of the military base are sources of revenue other than taxes. Since these accounted for $12 billion, and we know there was a $8 billion deficit, the tax revenue must have been enough to cover the remaining expenses. This means the tax revenue was $20 billion (total spending) minus $12 billion (other revenues), which equals to $8 billion. So the tax revenue for the year was also $8 billion.