1. The government has a budget surplus if:
the money supply is less than total expenditures.
its total revenues are greater than its total expenditures.
its total revenues are equal to its total expenditures.
its total revenues are less than its total expenditures.
2. Changes in the budget balance:
can be both the result of and the cause of changes in the economy.
can cause fluctuations in the economy.
can be the result of fluctuations in the economy.
are always bad idea.