Question

A budget ▼ deficit surplus is the amount by which government spending exceeds revenues in a given year. A budget ▼ deficit surplus is the amount by which government revenues exceed government expenditures in a given year.

Answer 1

The correct answer is: deficit; surplus.

Step-by-step explanation:

A budget deficit refers to the situation when the government expenditures are greater than government revenue. While a budget surplus is a situation where the government revenues are greater than government expenditure.

When government expenditures are equal to government revenues, the budget is said to be in balance.

A budget deficit is corrected by increasing taxes and decreasing spending.

A budget surplus can also be referred to as government saving.