If government expenditures exceed tax revenue the resulting shortfall is termed a ________.

Question

Quizplus · Accepted Answer

A budget deficit occurs when government expenditures exceed tax revenue, resulting in a shortfall. It represents the amount of borrowed funds required to cover the difference between spending and revenue. A budget shortfall, revenue shortfall, and revenue deficiency are all terms that can be used to describe a deficit, but "budget deficit" is the most common and widely used term. Taxing deficiency is not a common term in economic or fiscal policy discussions.

If Government Expenditures Exceed Tax Revenue the Resulting Shortfall Is