When government spending is less than its revenue (taxes), it generates a budget

When government spending is less than its revenue (taxes), it generates a budget:
a. investment
b. surplus
c. deficit
d. demand shock

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Answer

• b. surplus
  Explanation:
  When income or revenue is greater than expenditure, it creates a budget surplus. A budget surplus is determined for a specific period of time, usually a fiscal year. Budget surpluses is quite rate in modern economies with increasing expenditure and the urge to cut taxes in order to stimulate the economy and increase GDP and standards of living. Opposite of this is called budget deficit, which occurs when revenue is less than expenditure in a given period of time.