The Federal budget deficit is calculated each year by:

A. Subtracting government spending from government revenues

B. Subtracting consumption and investment from government spending

C. Adding up consumption, investment, government purchases, and net exports

D. Adding up the difference between government revenues and spending over the years of the nation's existence

The Federal budget deficit is calculated each year by:

A. Subtracting government spending from government revenues.

Explanation:

The budget deficit is literally when the spends of a country overcome the incomes that arrive at the federal reserve through taxation and others, by this reason, the correct form to calculating the budget deficit is substrating one from the other (although regularly it is made substrating government revenues from government spending).