Final answer:
The term deficit refers to the annual budget shortfall where government revenues are less than expenditures. The correct answer is 'b. the annual budget shortfall between revenues and expenditures'. A deficit is different from debt, which is the overall amount owed by the government.
Step-by-step explanation:
A deficit is a term that relates to government finances and budgetary conditions. The correct definition of a deficit in the context provided by the question is the annual budget shortfall between revenues and expenditures. This means that in a particular fiscal year, the government is spending more money than it is bringing in through various forms of revenue like taxes.
Therefore, the correct answer to the question is:
- b. the annual budget shortfall between revenues and expenditures
It's important to note that a deficit differs from the debt, which is the overall amount owed by a government due to past borrowing. The cancellation of an entitlement program does not directly relate to the definition of a deficit.