Across
- 1. also known as the marginal propensity to consume; is the increase in consumer spending when disposable income rises
- 5. when the aggregate output is below the potential output
- 6. Where the supply curve and demand curve intersect
- 11. the percentage of people in the labor force who are unemployed
- 12. the value of a household's accumulated savings
- 14. a decrease in overall price level
- 15. the downward-sloping curve on an S&D graph; when price goes up, quantity goes down
- 16. an increase in overall price level
- 17. shows the relationship between the aggregate price level and the aggregate quantity of output supplied
- 19. also known as marginal propensity to save; is the increase in household savings when disposable income rises
- 20. the percentage increase in the overall level of prices per year
Down
- 2. when one country has a lower opportunity cost than another country
- 3. the process of bringing the inflation rate down
- 4. is always equal to 1; is the MPC plus the MPS
- 7. shows the relationship between aggregate price level and aggregate output demanded
- 8. when one country produces more than another country with the same materials
- 9. when the aggregate output is above the potential output
- 10. the upward-sloping curve on an S&D graph; when price goes up, quantity goes up
- 13. Shows the possibilities of production of 2 given products for a country
- 18. also known as gross domestic product; measures the final output of an economy