Question

suppose the government revenue in country a is $400 mln and the government spending is $400 mln. 1. that means the government budget of country a is balanced 2. and the size of the deficit/surplus (if any) is $ select mln. 3. select 0 100 200 400 600

Explanation:

Step1: Recall budget - balance formula

The formula for budget balance is $Budget\ balance = Government\ revenue - Government\ spending$.

Step2: Substitute given values

Given that government revenue = $400$ mln and government spending = $400$ mln. So, $Budget\ balance=400 - 400$.

Step3: Calculate the result

$400−400 = 0$. A budget balance of 0 means the budget is balanced, and there is neither a deficit nor a surplus.

Answer:

1. is balanced
2. 0