The Budget Deficit and the National Debt (AQA A-Level Economics): Flashcards
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Practise the cards
10 cards from this deck
Budget deficit formula
Budget deficit formula
(govt spending exceeds tax revenue)
Deficit & debt: flow vs stock
Deficit & debt: flow vs stock
Deficit=flow (annual); Debt=stock (cumulative)
Key measure of debt burden
Key measure of debt burden
Debt to GDP ratio
Cyclical budget deficit
Cyclical budget deficit
Deficit portion that varies with economic cycle
Structural budget deficit
Structural budget deficit
Deficit component unrelated to economic state; persists
Automatic stabilisers examples
Automatic stabilisers examples
Progressive taxes & income-related welfare benefits
Financial crowding out process
Financial crowding out process
Govt borrowing raises rates, cuts private investment
Reproductive vs deadweight debt
Reproductive vs deadweight debt
Reproductive: assets; Deadweight: current spending
Rolling over the national debt
Rolling over the national debt
Renewing debt as portions mature
OBR function
OBR function
Independent analysis of UK public-sector finances