Across
- 5. L-shaped curve showing AS is elastic at low output and inelastic at full capacity.
- 6. Represents the economy's potential output at full employment, unaffected by the price level.
- 7. Reducing government restrictions to promote competition and increase productive capacity.
- 9. Unexpected events (e.g., sudden oil price hike) that shift SRAS rapidly.
- 10. Maximum output an economy can produce using all resources efficiently.
- 11. Efficiency of inputs (output per hour), key for shifting LRAS.
- 12. Size and skills of the working population.
Down
- 1. The level of risk-taking and business activity, influenced by taxes and regulations.
- 2. Shows the relationship between price level and output when at least one factor of production is fixed.
- 3. Innovation that improves efficiency and shifts LRAS right.
- 4. Main driver of SRAS shifts, including wages, raw material costs (e.g., oil), and import prices.
- 8. A weaker currency increases import costs, shifting SRAS left; stronger currency shifts it right.
- 11. Relates to LRAS; both represent maximum potential output.