Question

Econo Nation started 2015 with no national budget debt or surplus. By the end of 2015, it had a budget surplus of $304 million; in 2016, it had a budget deficit of $452 million; in 2017, it had a budget surplus of $109 million; and the amount of its budget deficit or surplus in 2018 is unknown. If at the end of 2018 Econo Nation’s national debt totaled $50 million, determine the deficit or surplus in 2018.

Answer 1

Answer:

$11 million

Explanation:

Calculation to determine the deficit or surplus in 2018.

First step is to calculate the national budget debt using this formula

National budget debt= Budget surplus in 2008 + budget deficit in 2009 + budget surplus in 2010

Let plug in the formula

National budget debt= $304 million - $452 million + $109 million

National budget debt= - $39 million

Now let calculate the the deficit or surplus in 2018 using this formula

Deficit or surplus= National budget debt + national debt

Let plug in the formula

Deficit or surplus= -$39 million + $50 million

Deficit or surplus= $11 million

Therefore the deficit or surplus in 2018 is $11 million