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Deficits, Debt and the Public Finances

Deficits, Debt and the Public Finances

Flow diagram showing how a recession activates automatic stabilisers, increases the cyclical fiscal deficit and adds annual borrowing to national debt

A fiscal deficit occurs when government spending exceeds tax revenue during one year, so the government must borrow. It is a flow measured over a period.

4.5.3 Public sector finances Lesson

  1. A Level
  2. /Economics
  3. /4.5.3 Public sector finances

Step-by-step lessons on Edexcel A A Level Economics 4.5.3 Public sector finances. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons