19 March, 01:42

# Econo Nation started 2013 with no national budget debt or surplus. By the end of 2013, it had a budget surplus of \$286 million; in 2014, it had a budget deficit of \$425 million; in 2015, it had a budget surplus of \$100 million, and the amount of its budget deficit or surplus in 2016 is unknown. If at the end of 2016, Econo Nation's national debt totaled \$52 million, determine the deficit or surplus in 2016. Instructions: Enter your answer as a whole number and include a negative sign if there is a deficit. Period Deficit (-) or surplus (+) Debt Beginning of 2013 \$0 End of 2013 \$286 million 2014 - \$425 million 2015 \$100 million End of 2016 million \$52 million

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1. 19 March, 02:12
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-\$13 million

Explanation:

Given that,

Budget surplus by the end of 2013 = \$286 million

Budget deficit in 2014 = \$425 million

Budget surplus in 2015 = \$100 million

Budget deficit or surplus in 2016 is unknown.

National debt at the end of 2016 = \$52 million

National Budget surplus / deficit at the end of year 2015:

= Budget balance of 2013 + Budget balance of 2014 + Budget balance of 2015

= \$286 million + (-\$425 million) + \$100 million

= - \$39 million

So the government will fund this deficit by taking debt of \$39 million.

National debt at the end of 2016 = Total debt till 2015 + Surplus/deficit for year 2016

-\$52 million = (-\$39 million) + Surplus/deficit for year 2016

- \$52 million + \$39 million = Surplus/deficit for year 2016

-\$13 million = Surplus/deficit for year 2016

This is budget deficit of \$13 million because debt increased by 13 million in 2016.