Suppose the Federal Budget Surplus for the Year Was $350

Multiple Choice

Suppose the federal budget surplus for the year was $350 billion and the economy were in an economic expansion.If the economy had been at potential GDP,it is estimated that tax revenue would have been $140 billion lower and government spending on transfer payments would have been $50 billion higher.Using these estimates,the cyclically adjusted budget

A) deficit was $440 billion.
B) deficit was $260 billion.
C) surplus was $160 billion.
D) surplus was $540 billion.