BASIC Macroeconomics IDEAS Flashcards
1
Q
current spending
A
spending on the running costs of the public sector (e.g. unemployment benefit)
2
Q
capital spending
A
spending on infrastructure project
3
Q
transfer spending
A
consist of transfer payments and involves spending on welfare
(e.g. salaries for government employees)
4
Q
Budget deficit
A
government spending exceeds tax revenue in one year, national debt increases
5
Q
budget surplus
A
tax revenue exceeds government spending this year, national debt decreases
6
Q
National debt
A
the total debt owed by a nation’s government
7
Q
Internal debt
A
owed to lenders within the country
8
Q
external debt
A
owed to foreign lenders
9
Q
Main government objective
A
GUILT
Growth Unemployment Inflation Living standard Trade (balance of payments)
10
Q
Other government objectives
A
BIPEDE
Budget balance International competitiveness Public service access Exchange rate sustainability Distribution of income and wealth Environmental sustainability