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the gap between revenues and expenditures for a government (over a given period of time); often referred to as an internal deficit or public deficit. The public deficit accumulates over each time period (usually a year) into what is known as the public debt. According to Keynesian and Neo-Keynesian economic theory, fiscal deficits are usually the most effective tool for stimulating economic activity; the actual choice of how the money is spent is less important.
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