Answered: Differentiate between the following…

Differentiate between the following terms: a. a budget deficit. b. the government debt. c. a budget surplus d. a balanced budget

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter16: Government Spends, Collects, And Owes

Section: Chapter Questions

Problem 16AA

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Question

Differentiate between the following terms:
a. a budget deficit.
b. the government debt.
c. a budget surplus
d. a balanced budget.

Expert Solution

Step 1

a. When the expenditure of individuals, Government, or company surpass the revenue then it is called budget deficit. However the term budget deficit generally uses for the government. In the budget account the government calculates how much it has spend and how much revenue it has generated.

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