Replied on Jan 29, 2021
there is the sectoral balance graph. If you look very carefully at all three sectors Government, Private, and the rest of the world- all must balance out to zero. the government deficit spends, that is they spent more into the economy than they tax back then the government will have a deficit and the private sector will have the = amount of surplus ex. gov't spends $ 1000.00 into the economy and taxes back $ 600.00= a gov't deficit os -$400.00 and a private sector surplus of $ 400.00 If