Budget deficit - A situation where government expenditure exceeds government income. Government income comes from taxation and other revenue and where this is less than the money the government is spending on defence, education, health, welfare and so on, this is called a budget deficit. Stocks of the commodity are kept and sold when the price is high to try to reduce it. When the price is low further stocks of the commodity are bought. C Capital - Man made resources e.g. machines, factories, offices.
Capital is one of the factors of production.
The key agents are households and firms and the circular flow shows how money moves between them. There may also be leakages from the circular flow and injections into it. They enjoy more utility than they had to pay for Consumption - Expenditure by households on goods and services which satisfy current wants. It is a key component of aggregate demand. Cost increases may happen because wages have gone up or because raw material prices have increased.