An increase in budget deficit typically leads to an increase in national debt as the government borrows more.

Higher than expected inflation decreases purchasing power as prices rise faster than income.

With a 5% inflation rate, a $100 product will cost $100 + ($100 * 0.05) = $105 after one year.

Inflation is primarily caused by increased demand for goods and services, which outstrips supply.

A budget surplus indicates that revenue exceeds expenditure, allowing for savings or debt reduction.

A high inflation rate typically indicates decreased purchasing power, as consumers can buy less with the same amount of money.

GDP stands for Gross Domestic Product, which measures the economic performance of a country.

GDP stands for Gross Domestic Product, which measures the economic performance of a country.

GDP stands for Gross Domestic Product, which measures the total economic output of a country.

Opportunity cost refers to the cost of the next best alternative that is foregone when making a decision.

A budget deficit occurs when expenses exceed revenue, indicating that the government is spending more than it earns.

High inflation typically decreases the real value of savings, discouraging saving behavior.

Inflation is defined as a sustained increase in the general price level of goods and services in an economy over a period of time.

The main purpose of taxation is to fund government spending on public services and infrastructure.

The primary goal of a government budget is to allocate resources effectively to meet the needs of the economy and its citizens.

The primary goal of economic policy is to promote growth, which leads to improved living standards and economic stability.

The primary goal of monetary policy is to control inflation by managing the money supply and interest rates.

The primary purpose of a national budget is to allocate resources effectively across various sectors.

A monopoly is a market structure where a single seller controls the entire market for a product or service.

The term for a sustained increase in the general price level is inflation.

Capitalism is characterized by private ownership of resources and means of production, allowing for profit-driven enterprise.

Capitalism is characterized by private ownership of resources and means of production.

The Consumer Price Index (CPI) is commonly used to measure inflation by tracking changes in the price level of a basket of consumer goods and services.

All of the options listed can contribute to inflation, including increased demand, decreased supply, and increased production costs.

Stable GDP growth is an indicator of a healthy economy, reflecting consistent economic activity.

A mixed economy features the coexistence of both private and public sectors, allowing for a balance between free market and government intervention.

All of the options listed are components of GDP, which includes consumption, investment, and government spending.

A trade deficit can lead to the depreciation of the national currency as more currency is sold to purchase foreign goods.

All of the above methods can be used to calculate GDP.

Government spending is a primary tool of fiscal policy, used to influence economic activity through budgetary decisions.