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.
Bonds and bond-like securities issued by the U.S. Treasury when it borrows.
What occurs when the government in one year spends more money than it takes in from taxes.
the total amount of money the federal government has borrowed to finance deficit spending over the years.
The macroeconomic generalizations accepted by most economists before the 1930s that led to the conclusion that a capitalistic economy was self-regulating and therefore would usually employ its resources fully.
The macroeconomic generalizations that lead to the conclusion that a capitalistic economy is characterized by the macroeconomic instability and that fiscal policy and monetary policy can be used to promote full employment, price-level stability, and economic growth.
The macroeconomic view that the main cause of changes in aggregate output and price level is fluctuations in the money supply; espoused by advocates of a monetary rule.
Equation of Exchange
MV = PQ, where M is the money supply, V is the velocity of money, P is the price level, and Q is the quantity of output (Nominal GDP) of goods and services produced in an economy.
The average number of times a dollar is spent to buy final goods and services in a year.
Rational Expectations Theory
the hypothesis that firms and households expect monetary and fiscal policies to have certain effects on the economy and take actions that make these policies ineffective
Monetarists' belief that the Fed should allow the money supply to grow at a smooth, consistent rate per year and not use monetary policy to stimulate or slow the economy