Use the following information to answer questions 3 and 4

Assume the national debt equals $0 prior to Year 1.

Government Spending Transfer Payments Tax Revenue

Year 1 $500 $200 $900

Year 2 $600 $200 $800

Year 3 $600 $300 $800

Year 4 $700 $300 $900

Year 5 $700 $400 $1000

Year 6 $800 $400 $1000

Year 7 $800 $500 $1000

3. What is the federal budget position in year 5?

4. What is the value of the national debt at the end of year 7?