You Have Two Sets of Estimates of National Account Numbers

Multiple Choice

You have two sets of estimates of national account numbers for a closed economy for next year. In the first set, government expenditures will be $30 billion, transfer payments will be $10 billion, and taxes will be $50 billion. Under the second set, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 billion, and investment will be $30 billion. Based on these numbers, what are the respective estimated results?

A) $20 billion surplus and a $20 billion surplus
B) $20 billion surplus and a $20 billion deficit
C) $10 billion surplus and a $20 billion surplus
D) $10 billion surplus and a $20 billion deficit