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The government's budget balance has a simple formula:
The government's revenue is what it earns through taxes (T). Its expenses are all its spending, including its purchase of goods/services (G) as well as transfer payments. If the two match, the government will have a balanced budget. If its revenues are higher, it will have a budget surplus. If the expenses are higher, it will have a budget deficit.
Now, suppose that the government initially has a balanced budget, then it starts spending more to stimulate the economy and create jobs. This will result in a for the government.
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