Barter refers to the direct exchange of goods or services between parties without the use of money as
Glossary Category: Economics
national debt
The national debt, also referred to as the public debt, represents the total amount of money that a
government budget surplus
A government budget surplus occurs when a government’s total revenue exceeds its total expenditures over a given period,
government budget deficit
A government budget deficit occurs when a government’s expenditures exceed its revenues over a specific period, typically a
macroeconomic objectives
The primary macroeconomic objectives of government policy are to achieve price stability, low unemployment, and sustainable economic growth.
government budget
A government budget is a financial plan outlining a government’s projected revenues and expenditures over a defined period,
full employment
Full employment refers to the level of employment in an economy where it operates at its potential output,
consequences of inflation
Negative consequences of inflation Reduced purchasing power: Inflation erodes the real value of money, so each unit of
cost-push inflation
Cost-push inflation occurs when rising production costs force firms to increase prices to protect their profit margins. Rising
demand-pull inflation
Demand-pull inflation occurs when aggregate demand (total spending in the economy) rises faster than aggregate supply, typically when