Macroeconomics

Across

2. The Policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing
3. at the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand
4. a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls
6. Adam Smith's concept that individuals' self-interested behavior can lead to positive social outcomes
12. the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance
16. an economy where economic decisions are passed down from government authority and where the government owns the resources
17. when human wants for goods and services exceed the available supply
18. products (goods and services) made domestically and sold abroad
19. when a currency is worth more in terms of other currencies; also called “strengthening”
20. whatever serves society in four functions: as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment.
21. the resources such as labor, materials, and machinery that are used to produce goods and services; also called factors of production
22. market the market in which households sell their labor as workers to business firms or other employers
25. way in which different workers divide required tasks to produce a good or service
27. at the existing price, quantity supplied exceeds the quantity demanded; also called excess supply
28. a diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labor market
29. a balance sheet with a two-column format, with the T-shape formed by the vertical line down the middle and the horizontal line under the column headings for “Assets” and “Liabilities”
33. when the mix of goods produced represents the mix that society most desires
34. when a currency is worth less in terms of other currencies; also called “weakening”
35. the extra benefit consumers receive from buying a good or service, measured by what the individuals would have been willing to pay minus the amount that they actually paid
36. This has no intrinsic value, but is declared by a government to be the country's legal tender

Down

1. institution which conducts a nation’s monetary policy and regulates its banking system
5. a price floor that makes it illegal for an employer to pay employees less than a certain hourly rate
7. the loss in social surplus that occurs when a market produces an inefficient quantity. This is usually caused by government intervention
8. a diagram that shows the productively efficient combinations of two products that an economy can produce given the resources it has available.
9. measure of the size of total production in an economy
10. the interest rate charged by the central bank on the loans that it gives to other commercial banks
11. products (goods and services) made abroad and then sold domestically
13. measures cost by what we give up/forfeit in exchange; opportunity cost measures the value of the forgone alternative
14. the situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change
15. a broad measure of the balance of trade that includes trade in goods and services, as well as international flows of income and foreign aid
23. the gap, if any, between a nation’s exports and imports
24. the relationship between price and the quantity demanded of a certain good or service
26. These are the term we use for costs that are made in the past, that we cannot get back.
29. gap between exports and imports
30. the price where quantity demanded is equal to quantity supplied
31. a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls
32. economic policies that involve government spending and taxes