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Model is a simplification and abstraction of reality. From the model, we can deduct conclusions and predict the real world. A model might represent information, activities, relationships, or even constraints. Economists use a mathematical equation and diagram to explain economic phenomenons.
What's it: National debt is money owed by the government to its creditors. The government owes money to cover the budget deficit, where
What's it: Discretionary fiscal policy is a deliberate government policy to influence the economy by changing its spending and income. It is
What's it: An induced tax is a tax in which the rate increases and decreases depending on the taxpayer's ability. So, when our income or wealth
What's it: A balanced budget is when a government's spending equals its revenue. Therefore, there is no surplus or deficit. So, the government
What's it: A budget surplus is when the government plans to spend less than it earns. In other words, the government's budgeted revenue is
What's it: A tax is a mandatory levy by the government on an individual or other entity. There are many variations, including income tax, value
What's it: A government budget is a government's planned expenditures and revenues over a specific period, usually one year. Government revenue
What's it: The inflation rate is the percentage change in the economy's prices of goods and services over a certain period. While inflation tells
