[ 473 ] Economics GED ® TEST SOCIAL STUDIES FLASH REVIEW _____________ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Use the graph and text to answer the following question. Federal Budget Surplus/Deficit, 1930–2002 Percent Surplus/Deficit 1930 1934 1938 1942 1946 1950 1954 1958 1962 1966 1970 1974 1982 1990 1994 1998 2002 1986 1978 10 5 0 –5 –10 –15 –20 –25 –30 –35 Each year the federal government collects revenues in the form of taxes and other fees. It also spends money on such necessary functions as national defense, education, and healthcare. When the government collects more than it spends, it operates at a surplus. In the graph, the government operated at a surplus for every year in which the line is above 0%. When the government spends more than it collects, it operates at a deficit. In the graph, the government operated at a deficit for every year in which the line is below 0%. In what year between 1930 and 2002 did the federal government operate with the greatest budget deficit? a. 1930 b. 1945 c. 1951 d. 1994