Macroeconomics - chapter 14 Deficit Spending and the Public Debt

Flashcards covering key vocabulary from a macroeconomics lecture on deficit spending and public debt.

Government budget deficit

Occurs when government spending exceeds revenues for a given time period.

Treasury bonds

Promissory notes issued by the U.S. Treasury; when purchased, they represent money lent to the government.

Balanced budget

Occurs when government spending and revenues are equal.

Government budget surplus

Occurs when government revenues exceed spending for a given time period.

Public debt (national debt)

The sum of all outstanding Treasury securities; the accumulation of deficits from prior years plus the interest owed.

Debt-to-GDP ratio

Compares the amount owed to the size of an economy; it reflects the ability to repay the debt.

Entitlements

Guaranteed benefits under a government program for those who qualify; includes Social Security, Medicare, and Medicaid.

Uncontrollable expenditures

Government spending that changes automatically without congressional action.