The following is the data for a hypothetical ...

The following is the data for a hypothetical island economy during a recent year. All values are in billions of real dollars. Assume that the island economy does not engage in trade with any other countries.

Gross Domestic Product $2,000

Net Taxes $400

Government Purchases $500

Planned Investment $300

Consumption $1,200

     3.1.   What is the status of the federal budget?   

      A.   Surplus of $300 billion

      B.   Surplus of $100 billion

      C.   Deficit of $400 billion

      D.   Deficit of $100 billion