USA HISTORY

Detailed explanation-1: -deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.

Detailed explanation-2: -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-3: -For example, Keynesian economists would advocate deficit spending on labor-intensive infrastructure projects to stimulate employment and stabilize wages during economic downturns. They would raise taxes to cool the economy and prevent inflation when there is abundant demand-side growth.

Detailed explanation-4: -A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. Federal budget deficits add to the national debt. Fiscal policy uses government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, and inflation.

Detailed explanation-5: -A surplus spending unit can be a household, business, or any other entity that makes more than it spends for the purpose of sustaining itself. The opposite of a surplus spending unit is a deficit spending unit, which spends more than it makes and has to borrow from surplus units to sustain itself.