Principles of Macroeconomics / Unit 14 MAC 1301 short lesson, about 20 seconds
Deficit, Surplus, Balanced Budget
Captions available
The idea
A government runs a budget deficit when spending exceeds revenue in a year, a budget surplus when revenue exceeds spending, and a balanced budget when the two are equal.
In practice
All three describe one year, not a stock of anything.
Where people slip
The minus sign is usually dropped when a deficit is reported.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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