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- Lower government revenues
- Increased public debt
Policies to Overcome Recession
- Expansionary fiscal policy
- Expansionary monetary policy
- Stimulating investment and consumption
- Government support for key industries
4. BUDGET DEFICIT
Meaning of Budget Deficit
A budget deficit occurs when government expenditures exceed government revenues
during a fiscal year.
Budget deficits are common in developing and developed countries, especially during
economic downturns.
Causes of Budget Deficit
- High government spending
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