A government’s budget balance is the difference between tax revenues and government purchases plus transfer payments in a given year. If the total of government spending and transfer payments is more than tax revenues, then the budget balance is negative, and the government is running a deficit

Statement b points out to government debt and not deficit, A deficit is a one-time shortfall; a debt is accumulated over time.

Question asks about budget deficit and also if a government engages in contractionary fiscal policy, it is more likely to run a budget surplus than a deficit.

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