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what factors caused the large budget surplus in 2001 to turn into a large deficit by 2006?


how is the national debt affected by deficit spending?

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Answer:

large projected surpluses turned to large deficits. For fiscal years 2001 through 2008, the last full fiscal year before President Bush left office, the $3.5 trillion of surpluses that CBO had projected for these years turned into deficits of $2 trillion. [3] A look behind these numbers is revealing.

A government experiences a fiscal deficit when it spends more money than it takes in from taxes and other revenues excluding debt over some time period. This gap between income and spending is subsequently closed by government borrowing, increasing the national debt.

Step-by-step explanation:

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