Final answer:
The government would have a A. $300 billion budget deficit when its spending ($900 billion) exceeds its revenue ($600 billion). Budget deficits contribute to the national debt and have been significant in certain years, like 2009 and 2020, relative to the U.S. GDP.
Step-by-step explanation:
If government spending is $900 billion while government revenue is $600 billion, the government is said to have a $300 billion budget deficit. A budget deficit occurs when the government spends more money than it receives in taxes within a given fiscal year. Conversely, a budget surplus would indicate that the government has received more in taxes than it has spent. A balanced budget is achieved when government spending and taxes are equal.
For instance, the U.S. government has experienced significant budget deficits in its history, particularly in 2009 and 2020, relating to increased spending during times of economic downturn or major events. To illustrate the impact of such deficits, in 2009, the deficit was about 10% of the U.S. GDP, while during the 2020 fiscal year, the deficit amounted to approximately 15% of the GDP. Budget deficits add to the national debt, which is the cumulative amount the government owes to its creditors.