Budget Deficit
Definition
A budget deficit occurs when a government spends more money than it collects in revenue during a specific period, usually a fiscal year.
Related terms
National Debt: The total amount of money that a government owes to its creditors, accumulated over time from budget deficits.
Fiscal Policy: The use of government spending and taxation to influence the economy.
Revenue: The income generated by the government through taxes and other sources.
"Budget Deficit" appears in:
Study guides (1)
AP Macroeconomics - 5.4 Deficits and the National Debt
Practice Questions (5)
If the government wants to reduce the budget deficit, which fiscal policy action should it implement?
What is the difference between a budget deficit and a budget surplus?
How is the national debt different from a budget deficit?
How might the government finance a budget deficit?
What is one potential consequence of issuing government bonds to finance a budget deficit?
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About Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.