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What is the difference between a deficit and a surplus?

Financial Definition of deficit. A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is the opposite of a surplus. Fiscal deficits occur when an entity's (usually a government) expenditures exceed its revenue. A government usually borrows money to fill the gap or "fund the deficit.".

What is a deficit in financial terms?

What Is a Deficit? In financial terms, a deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets. A deficit is synonymous with a shortfall or loss and is the opposite of a surplus. A deficit can occur when a government, company, or person spends more than it receives in a given period, usually a year.

What is supply and demand in economics?

Written By: Supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market.

What is the difference between budget deficit and trade deficit?

Budget Deficit A budget deficit occurs when expenditures exceed revenue. The ... Current Account Deficit A current account deficit occurs when the total value of goods ... Trade Deficit A trade deficit occurs a country's imports exceeds its exports.


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