vocab

• Budget deficit


  Any shortfall of net revenue below expenditure
• Budget surplus


  Any excess of net revenue over expenditure
• Fiscal policy


  The use of the government's tax and spending powers to achieve government objectives
• Marginal propensity to import


  The increase in import expenditures induced by a $1 increase in national income. Denoted by m.
• Net tax rate

  The increase in net tax revenue generated when national income rises by one dollar
• Net tax revenue

  Total tax revenue minus transfer payments, denoted T
• Stabilization policy


  Any policy designed to reduce the cyclical fluctuations of Y around Y*