Question: If the federal government spends 12% of GDP and collects revenues of 10% of GDP, what is the deficit as a percentage of GDP? A. 2% B. 1% C. 11% D. 12%

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 25P: LO.2 Oak Corporation has the following general business credit carryovers. If the general business...
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Question:
If the federal government spends 12% of GDP and collects
revenues of 10% of GDP, what is the deficit as a
percentage of GDP?
A. 2%
B. 1%
C. 11%
D. 12%
Transcribed Image Text:Question: If the federal government spends 12% of GDP and collects revenues of 10% of GDP, what is the deficit as a percentage of GDP? A. 2% B. 1% C. 11% D. 12%
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