ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget deficit occurs when expenses exceed revenue and can indicate the financial health of a country. The term is commonly used to refer to government spending rather than businesses or individuals.

Detailed explanation-2: -A budget deficit occurs when money going out (spending) exceeds money coming in (revenue) during a defined period. In FY 0, the federal government spent $ trillion and collected $ trillion in revenue, resulting in a deficit.

Detailed explanation-3: -An increase in the fiscal deficit, in theory, can boost a sluggish economy by giving more money to people who can then buy and invest more. Long-term deficits, however, can be detrimental for economic growth and stability.

Detailed explanation-4: -A deficit spending unit describes how an economy or economic unit within an economy has spent more than it has earned over a given measurement period. The opposite of a deficit spending unit is a surplus spending unit, which leaves money for the company to redistribute.

Detailed explanation-5: -Fiscal deficit. Revenue deficit. Primary deficit.