Chapter 14, Problem 4P

To determine

Concept introduction:

Balanced Budget: Federal government budget is balanced when its receipts and expenditure are equal during a year.

Budget Deficit: Budget deficit refers to the excess of federal government expenditure over its receipts during a year.

Budget Surplus: Budget surplus refers to the excess of federal government receipts over its expenditure during a year.

Public Debt: Public debt is a measure of the debt owed by the federal government to its creditors.

Net Public Debt: Net public debt is a measure of the debt owed by the federal government to its creditors, excluding federal government agencies.