BASIC Macroeconomics IDEAS Flashcards

1
Q

current spending

A

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

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2
Q

capital spending

A

spending on infrastructure project

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3
Q

transfer spending

A

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

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4
Q

Budget deficit

A

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

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5
Q

budget surplus

A

tax revenue exceeds government spending this year, national debt decreases

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6
Q

National debt

A

the total debt owed by a nation’s government

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7
Q

Internal debt

A

owed to lenders within the country

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8
Q

external debt

A

owed to foreign lenders

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9
Q

Main government objective

A

GUILT

Growth
Unemployment
Inflation
Living standard
Trade (balance of payments)
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10
Q

Other government objectives

A

BIPEDE

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