Question

Which term means the amount by which government revenues are more than government spending during a specific period?

a. budget deficit
b. budget surplus
c. economic depression
d. economic recession

Answer 1

budget deficit is the answer

Answer 2

This means that at the end of the year, when all the incomes (=revenues, mostly from taxes) have been counted and all the money that needed to be spent was spent, there is still some money left.

We refer to this situation as budget surplus - the correct answer is b). If some money i.s missing, we would call it a budget deficit