Question

Explain what is meant be a federal budget deficit/surplus and the national debt.

Answer 1

Answer-

The federal  budget can be either in deficit or in surplus.

A federal deficit occurs when the US fed government spends more than it has collected in taxes or current expenses of US fed government exceeds the amount of income received through different standard operations.

The budget surplus occurs when a US fed government collects  taxes that is more than it spends or the revenue of US fed government exceeds current expenses and results in excess funds that can be allocated as needed.

The national debt is simply the net accumulation of the US federal government's annual budget deficits. It is the total amount of money that the U.S. federal government owes to its creditors.