Macro: Measurement Of Macroeconomic Performance Flashcards
What are the objective goals of
Objectives are the goals of government policy
How do governments try to achieve aims
Governments try to achieve aims using instruments
What is a fiscal debt
A fiscal deficit is when a government spends more than it receives in tax revenue in a given time period
What does it mean if interest payments on the national debt are high
If interest payments on the national debt are high, this has a high opportunity cost
What is the opportunity cost of high interest loans on national debt
this is money that could be spent on education or hospitals
What is government debt
Government debt is ‘public debt’
Why is full employment not 0% unemployment
Full employment is not 0% unemployment because there will always be some people temporarily unemployed
What is economic growth
Economic growth is defined as an increase in real GDP
What is a rise in the real value of GDP
That is an increase in the real value of goods and services produced in an economy in a given period of time
