Question

when the federal government's expenditures for a year are greater than its revenue for that year, the difference is known as what?

Answer 1

Answer:

A budget deficit

Explanation:

A budget deficit arises when the governments spend more than it has collected.  The government 's main source of revenue is taxes and levies it imposes on businesses and individuals. Its expenses include salaries for public employees, social welfare, and expenditures on public goods and infrastructure development projects.

A budget deficit contrasts a budget surplus, which occurs when a government intends to spend less than it has collected. Budget deficits result in government borrowing from either the domestic or foreign markets.  A balanced budget is when the collected revenues match the planned expenditures.