Macroeconomics 5.1, 5.2, 5.3, 5.4, 5.5

National Debt

Total accumulated amount of money that the federal government has borrowed to cover the outstanding balance of expenses incurred over time

Fiscal Year

Runs from october 1 to september 30 and are labeled by the calendar year in which they end.

Debt-GDP ratio

The government’s debt expresses as a percentage of its GDP

Implicit Liabilities

Spending promises made by governments that are effectively a debt despite the fact that they are not included in the usual debt statistics

Budget balance

The difference between the government’s tax revenue and its spending, both on goods and services and on government transfers, in a given year

Debt

Accumulation of budget deficits

Cyclically adjusted budget balance

Estimate of what the the budget balance would be if real GDP were exactly equal to potential output

Target Federal funds rate

A desired level for the federal funds rate

Expansionary monetary policy

Monetary policy that shifts the AD curve to the right

Contractionary monetary policy

Monetary policy that shifts the AD curve to the left

Taylor rule

A rule setting the federal funds rate that takes into account both the inflation rate and the output gap.

Inflation targeting

Announcing the inflation rate that needs to be achieved by the Fed and set ting olucy in an attempt to hit that target.

Monetary neutrality