What is economic deficit?
Q: What is economic deficit?
A: Economic deficit is a situation where an entity or government is spending more money than it is earning.
Q: What term is commonly used to refer to government spending deficits?
A: The term “budget deficit” is most commonly used to refer to government spending deficits.
Q: What is the meaning of budget deficit?
A: Budget deficit refers to an excess in government spending over revenue.
Q: Is economic deficit solely related to government spending?
A: No, economic deficit could refer to business and individual spending as well.
Q: What term is used to refer to federal government deficits?
A: The term "national debt" is used to refer to accrued federal government deficits.
Q: What is the implication of having a budget deficit?
A: Having a budget deficit could lead to an accumulation of national debt, which may result in economic instability.
Q: Can economic deficit be avoided?
A: Economic deficit could be avoided through increases in revenue, reducing unnecessary expenses, and practicing good financial management.
