Question
Q. 16 Consider the following (nominal) data of a country in 2019: the GDP is $200 million, the tax collected by the government from the
Q. 16 Consider the following (nominal) data of a country in 2019: the GDP is $200 million, the tax collected by the government from the households is $10 million (this is the only revenue of the government), the government purchase of goods and services is $7 million, the disposable income of the households is $195 million. Based on the data above, the transfer payment made by the government to the households is __(i)__ and the government has a budget __(ii)__. A) (i) $5 million; (ii) deficit of $2 million B) (i) $10 million; (ii) deficit of $7 million C) (i) $0; (ii) surplus of $3 million D) (i) $5 million; (ii) surplus of $2 million E) (i) $10 million; (ii) surplus of $7 million
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