Sheet1Page 1business firm,"a business organization controlled by a single management"consumer sovereignty,"the authority of consumers to determine what is produced through their purchases of good/services"financial intermediaries,"institutions that accept deposits from savers and make loans to borrowers"investment,"spending on capital goods to be used in producing good/services"trade deficit,"imports > exports"trade surplus,"imports < exports"externality,"the cost or benefit of a transaction that is borne by someone who is not directly involved in the transaction"fiscal policy,"the policy directed toward government spending and taxation -congress and president"monetary policy,"the policy directed towards the control of money and credit -federal reserve (feds!)"economic growth,"increase in the real national income"budget surplus,"gov. revenue is > gov. spending"budget deficit,"gov. revenue is < gov. spending"transfer payment,"incline transferred by the gov. from 1 citizen to another (does not have to be repaid)"
This is the end of the preview.
access the rest of the document.
budget deficit, gross domestic product, Consumer price index, GDP deflator, holders Nominal GDP