Question

assume a government has $27,113 in tax revenues and $40,968 in total government spending. what is the value of the annual budget balance? please round to 2 decimal places if needed. be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.

Answer 1

The annual budget balance is calculated by subtracting the total government spending from the tax revenues. With tax revenues of $27,113 and government spending of $40,968, the annual budget balance is $ -13855, indicating a deficit.

Step-by-step explanation:

The annual budget balance of a government is defined as the difference between its tax revenues and government spending. In this case, we need to calculate the budget balance by subtracting the total government spending from the tax revenues. The equation can be represented as:

Budget Balance = Tax Revenues - Government Spending

By substituting the provided values:

Budget Balance = $27,113 - $40,968

Budget Balance = -$13,855

Therefore, the value of the annual budget balance is -13855, indicating a budget deficit.