ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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budget surplus
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budget deficit
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budget balance
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national savings
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Detailed explanation-1: -The debt is the total amount of money the U.S. government owes. It represents the accumulation of past deficits, minus surpluses. Debt is like the balance on your credit card statement, which shows the total amount you have accrued over time.
Detailed explanation-2: -Understanding the National Deficit A budget deficit occurs when money going out (spending) exceeds money coming in (revenue) during a defined period. In FY 2022, the federal government spent $6.27 trillion and collected $4.90 trillion in revenue, resulting in a deficit.
Detailed explanation-3: -When a government’s expenditures on goods, services, or transfer payments exceed their tax revenue, the government has run a budget deficit.
Detailed explanation-4: -When the government incurs more public expenditure for governmental projects then its expenditure exceeds its revenue, and this is called deficit budget.