Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 13

Last year, while an economy was in a recession, government spending was $595 billion and government revenue was $505 billion. Economists estimate that if the economy had been at its full-employment level of GDP last year, government spending would have been $555 billion and government revenue would have been $550 billion. Which of the following statements about this government's fiscal situation are true?
A) The government has a non-cyclically adjusted budget deficit of $595 billion.
B) The government has a non-cyclically adjusted budget deficit of $90 billion.
C) The government has a non-cyclically adjusted budget surplus of $90 billion.
D) The government has a cyclically adjusted budget deficit of $555 billion.
E) The government has a cyclically adjusted budget deficit of $5 billion.
F) The government has a cyclically adjusted budget surplus of $5 billion.