BASIC Macroeconomics IDEAS Flashcards Preview

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Flashcards in BASIC Macroeconomics IDEAS Deck (10)
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1

current spending

spending on the running costs of the public sector (e.g. unemployment benefit)

2

capital spending

spending on infrastructure project

3

transfer spending

consist of transfer payments and involves spending on welfare
(e.g. salaries for government employees)

4

Budget deficit

government spending exceeds tax revenue in one year, national debt increases

5

budget surplus

tax revenue exceeds government spending this year, national debt decreases

6

National debt

the total debt owed by a nation’s government

7

Internal debt

owed to lenders within the country

8

external debt

owed to foreign lenders

9

Main government objective

GUILT

Growth
Unemployment
Inflation
Living standard
Trade (balance of payments)

10

Other government objectives

BIPEDE

Budget balance
International competitiveness
Public service access
Exchange rate sustainability
Distribution of income and wealth
Environmental sustainability