Answer to Question #8984 in Macroeconomics for moni

Question

Government debt is defined as

a shortfall of incoming revenue relative to outgoing payment
a shortfall of outgoing payments relative to incoming revenue
accumulated deficits minus accumulated surpluses
accumulated surpluses minus accumulated deficits

Answer 1

1) a shortfall of incoming revenue relative to outgoing payment
It means that incoming revenues can’t cover all government outgoing payments and it leads to deficit at first and then to the government debt.