 |  Macroeconomics, 9/e Campbell R. McConnell,
University of Nebraska, Lincoln
Stanley L. Brue,
Pacific Lutheran University
Thomas P. Barbiero,
Ryerson University
Deficits, Surpluses, and the Public Debt
Key TermsBelow are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
| Annually balanced budget | A budget in which government expenditures and tax collections are equal each year.
| | | | | Cyclically balanced budget | The equality of government expendi tures and net tax collections over the course of a business cycle; deficits incurred during periods of recession are offset by surpluses obtained during periods of prosperity (inflation).
| | | | | External public debt | Public debt owed to foreign citizens, firms, and institutions.
| | | | | Functional finance | The use of fiscal policy to achieve a non-inflationary full employment gross domestic product without regard to the effect on the public debt.
| | | | | Public debt | The total amount owed by the federal government to the owners of government securities; equal to the sum of past government budget deficits less government budget surpluses.
| | | | | Public investments | Government expenditures on public capital (such as roads, highways, bridges, mass transit systems, and electric power facilities) and on human capital (such as education, training, and health).
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2002 McGraw-Hill Higher Education