Government Deficits and the National Debt Practice Test

Based on the government budget information shown, the government experiences a cyclical deficit in one year and a surplus in the next as the economy recovers.

Assume the national debt at the end of 2032 is $7{,}000$ billion and ignore interest.

Federal Budget (billions of dollars)

Based on the government budget information shown, the government begins 2034 with a national debt of $38.0$ trillion. In 2034 it runs a $0.5$ trillion deficit, and in 2035 it runs a $0.5$ trillion deficit. Interest payments are positive in both years but are already included in the reported spending totals that generated the deficits. Ignoring any other factors, which statement best describes the debt path and the interpretation of deficits versus debt?