1
Q
What is national debt
A
The total amount of money the government owes the public sector
2
Q
What is the budget deficit
A
Measures what is taken from taxes and spent out in government spending
3
Q
How is the budget and debt linked
A
If gov has a deficit, it is over spending, and therefore in most cases adding to the overall pile of debt
4
Q
What is a balanced budget
A
When government spending = government taxation
