A budget deficit is defined as: Select the correct answer and explain why its correct a shortfall of revenues compared to expenditures. a shortfall of expenditures compared to revenue. accumulated deficits minus accumulated surpluses. accumulated surpluses minus accumulated deficits.

12. The national debt in the current year is equal to the national debt at the beginning of the year minus the annual budget deficit. a. b. equal to the national debt at the end of the year plus the annual budget deficit. equal to the national debt at the beginning of the year plus the annual budget deficit. C. d. none of the above. H. I

Explain how a budget deficit arises and what actions governments must take in this circumstance and how does the budget deficit relates to the national debt, use examples, please!

10. Compare and contrast the different forms of fiscal policy. Expansionary Fiscal Policy Contractionary Fiscal Policy Government Spending Taxes Aggregate Demand National Debt Economic Growth Inflation Employment