Economic lingo
The amount by which money spent is more than money received
What is a DEFICIT?
The total amount of money which a country's government has borrowed
What is NATIONAL DEBT?
A general increase in prices and decrease in the purchasing value of money
What is INFLATION?
A voucher issued cheaply by the state to those on low income and exchangeable for food
What is a FOOD STAMP?
A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters
What is RECESSION?
Persistent high inflation combined with high unemployment
What is STAGFLATION?
An asset or item acquired with the goal of generating income or appreciation
What is an INVESTMENT?
Money spent by a government to provide its military with weapons, equipment, and soldiers
What is DEFENSE SPENDING?
Occurs when tax revenue is greater than government spending
What is a NATIONAL BUDGET SURPLUS?
A situation in which a country is unable to pay back its government debt
What is a DEBT CRISIS?
An economic policy, usually consisting of tax increases, spending cuts, or a combination of the two, used by governments to reduce budget deficits
What is AUSTERITY?
A foreign state or foreign bank which has lent funds to another state
What is a FOREIGN CREDITOR?
When politicians fundraise, allocate, and spend money appropriately
What is FISCAL RESPONSIBILITY?
A document prepared by the government presenting its anticipated tax revenues and proposed spending for the coming financial year
What is a NATIONAL BUDGET?
When an economy is bouncing back from a recession and starting to expand again
What is ECONOMIC RECOVERY?
What is the GROSS DOMESTIC PRODUCT or GDP?
The amount a lender charges a borrower and is a percentage of the amount loaned
What is INTEREST RATE?
A debt obligation issued by a national government promising to repay borrowed money at a fixed rate of interest at a specified time
What is a GOVERNMENT BOND or TREASURY BOND?
What is MONEY SUPPLY?
A central bank's actions that manage the money supply in order to achieve sustainable economic growth
What is MONETARY POLICY?
The central bank and monetary authority of the United States
What is THE FEDERAL BANK or THE FED?
a package of tax rebates and incentives used by the government to stimulate economy and save their country from a financial crisis
What is a STIMULUS PACKAGE or STIMULUS BILL?