Public Sector Finances Flashcards
1
Q
What is the better definition for a budget deficit?
A
when public expenditure is greater than tax revenue
2
Q
Cyclical deficit
A
high public expenditure and low tax rev during recession
(high unemployment, increased spending benefits e.t.c)
3
Q
Structural deficit
A
budget deficits that remain throughout the course of the business cycle
4
Q
National debt
A
total debt built up by government borrowing over time
