Econ 1-13 Recession Hyperinflation Stagflation

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Across
  1. 3. Paul Volcker ended stagflation when he cut the money supply and ____ interest rates. Prices stopped rising.
  2. 6. Fed addressed stagflation by boosting money supply, but low ___ prevented output, so we just got inflation.
  3. 8. When ___ is ___ , printing more money just creates more inflation (productivity creates wealth, not money).
  4. 11. The ___ of society matter. If society fears recession, they decrease spending, which causes a recession.
  5. 12. If you expect ___ to ___ , you wait for a lower price. But during a recession, the Fed wants us buying quickly.
  6. 13. When the GDP falls for a long time, & unemployment rises for a long time, this is a ____ .
  7. 16. ___ stops people from borrowing. Money you pay back has more buying power than the money you borrowed.
  8. 17. creates uncertainty, which limits foreign ____ . (other countries don’t trust your currency)
  9. 18. When there is ___ ___ than purchases, and more workers than jobs, this is a recession.
  10. 19. After years of inflation, people ___ inflation, so they make purchases quickly, which causes dollars to circulate faster.
Down
  1. 1. Hyperinflation solution: ___ the currency & create a new currency, or use the currency of another country.
  2. 2. The ___ of money measures the number of times a dollar is spent. More ___ means more inflation.
  3. 4. Early 1900s, Germany suffered from ___ . To pay Allies after W.W. I, they printed a lot of currency.
  4. 5. Zimbabwe, inflation so fast that companies ___ ___ several times a day.
  5. 7. Biggest unit of currency ever was the ___ ___ dollar bill. Those dollars were worthless.
  6. 9. One definition of hyperinflation is when a country experiences a ____ inflation rate of over 50%.
  7. 10. During a recession, the Fed lowers ___ ___ , so people take out loans & get the economy going again.
  8. 12. Hyperinflation occurs when a country pays for programs or debts by ___ ___ .
  9. 14. Hyperinflation & inflation ___ ___ . Old people have no retirement money & cannot work.
  10. 15. When prices go up (inflation), & production does down, this is ___ .