Across
- 4. If technology improves in a society, the aggregate production function will _____ upwards.
- 6. Country A has a higher GDP per capita than Country B. Country A has many harbors and bridges, while Country B contains mostly inefficient roads. One reason why Country A has a higher GDP per capita is because there is more ___ spending
- 9. The growth rate is the change in ____ GDP per capita over time
- 11. In Boyd’s Supermarket, management has decided to add 4 more self-checkout machines for customers. This action will result in the aggregate production function graph of Boyd’s Supermarket having __________ the curve in the short run.
- 13. Output per unit of input.
- 14. The countries of Octavantia and Daniellian are fighting over new territory in the Pacific Ocean. The territory has an abundance of coal and timber. Octavantia has an area of 520 square kilometers and a population of 9,000 people, and Daniellian has an area of 400 square kilometers and a population of 7,000 people. The country of ___ will have a greater increase in real GDP per capita.
- 15. ___________ occurs when aggregate supply decreases causing increasing unemployment and inflation
- 17. Government spending ____ (always, sometimes, never) results in economic growth.
- 19. If the government increases the money supply, inflation, resource prices, and real output will rise in the short run. In the ____ ___, however, the economy can tank if inflation is bad enough.
- 20. A country that previously had a low growth rate recently purchased land which has a large access to fossil fuels. This may increase the growth rate due to more access to __________ resources
- 25. Decreasing interest rates is an example of a _______ policy
- 26. According to the short-run Phillips curve, the relationship between inflation and unemployment is ___
- 28. The country of Eveville has recently been at war with the country of Markland for 89 years. However, the country of Shreya Islands has been at peace for a long time. In turn, the country of Shreya Island has much higher economic growth than Eveville and Markland. This is an example of ___ _ __
- 29. If the money supply increases by a factor of 5, by what factor will the price level increase?
- 30. The average times a dollar is spent & re-spent in a year is the the ____ of money
Down
- 1. A country recently spent a large amount of money on a bridge that would allow access to a major point. By doing this there would be an ______ in physical capital.
- 2. Monetary policy can increase real output in the _____
- 3. Country A passes a law that decreases corporate taxes, pushing their economic growth far past Country B. This is because businesses were able to invest more in _______ _____.
- 5. If the velocity of money is 10, the money supply is 30, and the price level is 20, what is the real GDP?
- 7. If a business invests in machinery and buys more tractors, they are increasing ___ capital
- 8. What does GDP per capita take into account?
- 10. The country Cliffordlandia passes a policy that is designed to increase production by reducing business taxes. The citizens of Cliffordlandia find this government supply-side _____ policy to be problematic.
- 12. Business A has dedicated a large portion of its spending on purchasing machinery and tools. Business A on the other decides that this is not important and a waste of money. In the end, Business A will have a larger _____
- 16. Due to an increase in the bank’s recent reserve requirements, a country is in a negative output gap. By using the monetary policy of ______ interest rates, the negative output gap would be closed
- 18. Malaysia recently experienced a devastating earthquake which resulted in their supply decreasing by 40%. In the Phillips Curve graph, there will be a shift ______ in the short run.
- 21. The Long Run Phillips Curve states that there is no _______ between inflation and unemployment
- 22. In 1960, the country Cliffordlandia did not let women receive an education. However, in 1961 a law was passed, giving women this right. This means that the country will have great economic growth according to improvement in ______ capital.
- 23. Denmark scientists make technology that prints materials faster. As a result of this, there is a shift in the short-run Phillips curve to the ___.
- 24. The government of Lorandia increased physical capital after offering investment ___, but the policy ended up disproportionally helping the rich population.
- 27. The country of Finland measures its national debt by adding together its budget deficits. The government rejoices as they realize that they don’t have a national debt! However, the old, retired people of Finland shake their heads because the government forgot about all of the ____________, or required payments from the government to the people that they have to pay.