Across
- 4. Does a positive output gap mean that factors of production are being over
- 11. What does it mean when there’s a negative gap (2 words)
- 14. The thing that could make the actual GDP fluctuate and no one can predict them.
- 16. When actual GDP falls or rises below the productive potential of the economy, what does this mean? (2 words)
- 18. What is the other word for spare capacity?
- 19. If an employee is working beyond their working hour this could be classified as a … output gap.
Down
- 1. If there’s a negative output gap, will there be a (2 words)
- 2. A weak demand would result in what type of employment? (2 words)
- 3. In order to reduce demand-pull inflation, what would banks do? (2 words)
- 5. What is the other word for potential output?
- 6. Two types of shocks that cause fluctuations in the economy are? (2 words)
- 7. A natural disaster is a part of what type of shock?
- 8. If the negative output gap is too large, what will the government intervene with so they can boost the AD?
- 9. An increase in world commodity price could both raise the price level in an economy and lead to a rise in import values if demand for the commodity is price inelastic. The rise in import cost will reduce aggregate supply, leading to lower output. What type of cause is this? (2 words)
- 10. If the positive output gap persists, then what would the workers bargain for?
- 12. The fall in recession is a result of what type of shock?
- 13. Gap What is the term used to describe the actual level of real GDP and its estimated long-term value at a point in time?
- 15. What does it mean when there’s a positive gap? (2 words)
- 17. rise An example of demand-side shocks (hint: related to government)
- 20. If there is a decrease in price level, ceteris paribus, what would happen to the GDP?