terms 1
The financial plan for a government over a specific period, usually a year, detailing expected revenues (taxes, fees) and expenditures (infrastructure, social programs).
National Budget
Occurs when a government's total expenditures exceed the revenue it generates, excluding borrowing.
Fiscal Deficit
A country with a highly developed industrial base, high living standards, high GDP per capita, and strong infrastructure and institutions.
Developed Economy
The situation where people who are willing and able to work cannot find jobs.
Unemployment:
An economy that does not engage in international trade, relying solely on domestic production and consumption.
Closed Economy
The total value of all goods and services produced in a country, typically measured by Gross Domestic Product (GDP) or Gross National Product (GNP).
National Income
The process by which a country's central bank (e.g., the Federal Reserve) manages the money supply and interest rates to control inflation, consumption, and economic growth.
Monetary Policy
A record of all financial transactions made between a country and the rest of the world, including exports, imports, foreign investment, and financial transfers.
Balance of Payments
The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money
Inflation
An economy that engages in international trade, allowing goods, services, and capital to flow across borders.
Open Economy
The amount of money individuals have left to spend or save after taxes have been deducted from their income.
Disposable Income
The increase in the production of goods and services in an economy over time, often measured by GDP growth
Economic Growth
The total value of all goods and services produced within a country's borders in a specific time period, used as a measure of economic activity.
GDP (Gross Domestic Product)
The opposite of inflation, a decrease in the general price level of goods and services, which can increase the value of money but also signal economic stagnation.
Deflation
The total amount of money a country's government owes, accumulated from borrowing over time.
National Debt
A country with a less developed industrial base, lower standard of living, and lower Human Development Index (HDI), often in the early stages of economic growth.
Developing Economy
Similar to GDP, but it includes the total income earned by a country's residents, whether domestically or abroad, and excludes income earned by foreigners within the country.
GNP (Gross National Product)
The portion of disposable income not spent on consumption but kept aside for future use or investment.
Savings
Government strategies for influencing the economy through spending and taxation to manage inflation, unemployment, and economic growth.
Fiscal Policy
The process by which the economic well-being and quality of life of a nation improve, typically involving industrialization, increased living standards, and reduced poverty.
Economic Development
The condition where individuals who are willing and able to work are engaged in productive activities, typically receiving a wage or salary in return.
Employment
The act of allocating resources, usually money, in the hope of generating income or profit, such as purchasing stocks, bonds, or real estate.
Investment