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Katarina [22]
3 years ago
5

In a single year, a government collects $40 billion in taxes. In that same year, the government spend $35 on government services

. This would create which economic situation?
Social Studies
1 answer:
timama [110]3 years ago
6 0

Answer:

Budget surplus

Explanation:

In simple words, When income surpasses expenses, a budget surplus is created. Consumers have "savings" instead of a "budget surplus," hence the word is frequently applied to a government's financial situation. A budget surplus indicates that the government's resources are well-managed.

A budget surplus helps to stabilize the economy when it is expanding and undergoing inflation. In this case, tax rates rise in proportion to rising employment as well as income

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