The Main Difference Between a Flexible Budget and a Static

question 101

True/False

The main difference between a flexible budget and a static budget is that the static budget is not adjusted for changes in the level of activity.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed, by various means.

Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a given fiscal period, leading to borrowing or debt accumulation.

Economic Crises

Periods of significant decline in economic activity spread across the economy, lasting more than a few months, and are normally visible in real GDP, real income, employment, industrial production.

Environmental-protection Legislation

Laws and regulations enacted by governments to regulate activities that cause environmental degradation, and to protect natural resources and ecosystems.