The federal budget deficit in 1943 was about $54.5 billion. In 2003, was $375 billion. GDP in 1943 was about $1.6 trillion, and GDP in 2003 was about $11.0 trillion. In which year was the deficit more of a burden on the economy?
A government budget deficit is accrued when the proposed fiscal spending for a financial year exceeds the proposed revenues the government is expected to generate from all channels. It is reflected in terms of negative budget balance and is also known as fiscal deficit.
Answer and Explanation: 1
The federal deficit in 1943 was about $54.5 billion against the GDP of $1.6 trillion. The budget deficit burden in 1943 was equal to:
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fromChapter 11 / Lesson 14
Examine the budget deficit definition and the causes of budget deficits. Find out how government budget deficits affect the economy and learn relevant history.