economics budget deficit
- Created by: ishah
- Created on: 08-05-13 16:10
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- budget deficit
- spend>income in
- opposite - surplus
- gov debt' - financed by borrowing
- can print new currency to pay debts
- may = inflation
- sell assets -pay off debt
- can print new currency to pay debts
- gov deficit measured with/out interest on debts
- primary deficit
- G - T
- total deficit
- spending + interest on debt - tax rev'
- cyclic deficits
- lowest point
- high level of unemplo
- T<G
- high level of unemplo
- peak of cycle
- T>G
- lowest point
- structural deficits
- serious - persists
- G too high for prevailing T levels
- fiscal gap
- diff' between G and T - long term
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