Econ last exam Deficits and Debt Ch. 17 Flashcards

738047077	deficit	a shortfall of revenues under payments
738047078	surplus	an excess of revenues over payments
738047079	social security system	a social insurance program that provides financial benefits to the elderly and disabled and to their eligible dependents and/or survivors
738047080	structural deficit	the part of a budget deficit that would exist even if the economy were at its potential level of income.
738047081	passive deficit	the part of the deficit that exists because the economy is operating below its potential level of output. AKA the cyclical deficit
738047082	nominal deficit	the deficit determined by looking at the difference between expenditures and receipts.
738047083	real deficit	the nominal deficit adjusted for inflation
738047084	debt	accumulated deficits minus accumulated surpluses. Whereas deficits and surpluses are flow measures (defined for a period of time) ------ is a stock measure (it is defined at a point in time)
738047085	internal debt	government debt owed to other governmental agencies or to its own citizens
738047086	external debt	gov debt owned to individuals in foreign countries... more like an individual's debt.
738047087	ways growth in GDP can occur	through inflation (rise in nominal but not real GDP) or through real growth
738047088	debt service	the interest rate on debt times the total debt