Across
- 2. Elected as president of the United States in 1932. He created the “New Deal” plan to get America’s economy back on its feet after the depression. Known for abolishing prohibition, removing America from the gold standard and his Alphabet Agencies.
- 5. First became a concern in the 1980s. A result of irresponsible deficit financing. Increasing government spending and lowering taxes during an economics downturn but not raising taxes and lowering government spending during times of prosperity.
- 6. Believed in classical liberalism and the invisible hand. Did not want the government involved in the economy. A champion of Supply-Side Economics.
- 9. Government reduction or elimination in an industry, making it easier for businesses to run. Cuts costs, promotes efficiency and removes cumbersome laws and regulations,
- 12. (Two words) This is when a government adjusts its spending and tax rates to influence the country’s economy.
- 13. (Three words) Popularized by Thatcher and Reagan, this is an economic term used to describe Friedman’s monetarism.
- 14. Believed that the economic anomaly “Stagflation” was a direct result of government intervention. He said that government spending was out of control and high interest rates led to this stagflation. This became known as trickle down economics, which would later be popularized by Reagan and Thatcher.
- 17. (Two words) Modern day Sweden. This type of government system calls for fair distribution of wealth among all members of a society through taxes. Uses progressive taxation, where the more money you make, the more you pay in taxes.
- 19. US president who popularized the term “trickle down economics”. Provided large tax cuts, especially to the rich in America.
- 21. (Two words) In relation to debt, the government is supposed to raise taxes and lower spending during economic prosperity so there are funds to fall back on during a downturn. However, this was not popular among citizens so in order to get elected politicians would neglect this and even lower taxes during prosperity.
- 23. An unusual economic occurrence in which inflation continues to go up even when the economy is in a recession. Causes even less consumer spending.
- 24. (Two words) Occured in 1929, one of the largest market crashes in history. Caused widespread panic and poverty. Millions in Canada and America could not find work. WWI veterans marched to Washington and set up “Hoovervilles” demanding their bonuses for serving.
- 25. (Three words) An economic theory that explains what causes an economic depression. When the supply of money is high it leads to inflation, and when it is low it leads to depression. It relies on government intervention and deficit financing to “flatten out” the boom and bust cycle.
Down
- 1. (Two words) A form of taxation in which the rich pay higher taxes. The more money you make, the more you pay in taxes. Also known as the “robin hood tax”
- 3. (Three words) An economic theory that we can achieve economic prosperity through little to no government intervention. Government spending should be low and taxes should be low, to allow people to have their normal spending habits. Supported by Hayek and Friedman.
- 4. (Two words) A set of policies put in place by FDR to deal with the Great Depression. He used government intervention to get the economy started back up and restore the common people’s faith in both banks and the government. The most prominent part of this New Deal is what came to be known as the Alphabet Agencies. A series of administrations to give work to and support the unemployed and homeless.
- 7. Explained the causes of an economic depression with demand side economics. Believed in deficit financing and government involvement to keep the economy stable.
- 8. (Two words) This is when governments pay out more than they are receiving in tax revenue during an economic downfall. It relies on raising taxes during prosperity to make back the extra money lent out.
- 10. (Two words) This motivating factor of capitalism was first developed by Adam Smith. This selfish motivation will promote a better society as others will work harder. For example, when the common person notices that the Rich spend money on luxurious yachts, cars, and homes it motivates the common person to work harder to achieve a better lifestyle.
- 11. (Two words) A strategy in which central banks influence the nation’s money supply. This can be done through the increasing or decreasing of interest rates.
- 15. (Two words) A policy set forth by Theodore Roosevelt, it promised equal treatment for all.
- 16. An economic peak where most people share an increase in prosperity. Typically happens when there is an abundance of raw materials, reduced taxes or opportunities in new technology. There is an increase in employment and salaries as well as an increase in inflation.
- 18. When the supply of money is too high, caused during times of prosperity. It can be fixed by raising taxes and interest rates as well as decreasing government spending.
- 20. An economic trough, most people are very poor. There is an increase in unemployment, income falls and there is a decrease in demand. Inflation decreases or in extreme cases, deflation occurs.
- 22. (Two words) An economic system in which there is little to no government interference, a true market economy. Supported by individualists.