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Definitions:

Annually Balanced Budget

Budget philosophy prior to the Great Depression; aimed at matching annual revenues with outlays, except during times of war.

Business Cycle

The periodic fluctuations in economic activity characterized by phases of expansion and contraction.

National Debt

The total amount of money that a country's government has borrowed from various sources.

Functional Finance

An economic theory that prioritizes achieving full employment and stable pricing over balancing budgets.

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