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A budget surplus occurs when a government receives revenue than it spends in any given fiscal year.

A. True
B. False

1 Answer

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Final answer:

A budget surplus happens when a government's revenue exceeds its expenditures in a fiscal year, which is true. The U.S had surpluses in the late 1990s but faced large deficits in 2009 and 2020. Therefore, the given statement is True.

Step-by-step explanation:

A budget surplus occurs when a government receives more revenue than it spends in any given fiscal year. The statement is True. For instance, the U.S. government ran budget surpluses from 1998-2001. However, there have been years of significant budget deficits as well.

In 2009, during the financial crisis, the federal government experienced a huge budget deficit, spending approximately $1.4 trillion more than it collected in taxes. More recently, in 2020 amidst the COVID-19 pandemic, the government spent about $3.1 trillion more than its revenue, resulting in the largest budget deficit as a percentage of GDP since World War II.

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