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Subjects

Economics

Deficit budget

In Class 12 Economics, this topic explains how a deficit budget arises when the government’s total expenditure exceeds its receipts. As part of Government Budget and the Economy, students explore revenue, fiscal and primary deficits, and learn how governments finance shortfalls through borrowing or other measures. They also examine the possible effects on public debt, inflation, economic growth and fiscal policy, developing a balanced understanding of why deficit financing may be used and what trade-offs it creates.

Hard · Level 1 · 1 questions

TOPIC PRACTICE

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  1. Aggregate demand and government borrowing
  2. Personal taste and colour
  3. Product packaging and brand name
  4. One shop’s rent and board

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