WORLD HISTORY

Detailed explanation-1: -In simple terms, a deficit means an amount by which a sum falls short of some reference amount. A deficit is an amount by which one resource, especially money, falls short of what is required. If expenditures exceed income, imports exceed exports, or liabilities exceed assets, a deficit exists.

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: -Stabilizing the economy 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: -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.