ECONOMICS CROSSWORDS (Karen-Kayla-Davy-Owen)

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Across
  1. 2. (two words)When a positive output gap persists, workers will demand higher wages to compensate for _______.
  2. 6. (two words) When a housing market bubble bursts, this is an example of which type of shock?
  3. 8. (two words) Positive output gaps can only be achieved in the ________ since the economy is operating beyond full capacity, in which, for example, workers will work unsustainable extra hours.
  4. 9. (two words) When a negative output gap occurs, the economy is operating inside the ________.
  5. 10. Other than the PPF curve, potential growth also relates to which curve?
  6. 12. (two words) Governments will intervene with policies to increase _____ if the negative output gap is too large.
  7. 14. What type of output gap means some factors of production in the economy is being underutilised?
  8. 15. (two words) The trend rate of growth is assumed to be the approximation of the average actual rate of _________ over time.
  9. 16. (two words)A central bank is likely to raise interest rates to reduce aggregate demand in order to reduce _________.
  10. 17. Potential growth is shown by a shift in the LRAS curve to which direction?
  11. 18. (two words) If there is a sharp fall in oil and other commodity prices, is this an example of a positive or negative shock?
Down
  1. 1. (two words) Weak demand in the economy that occurs during a negative output gap may suggest that there is ________ unemployment.
  2. 3. (two words) An increase in trade union activity which leads to a large increase in wages is an example of a ________
  3. 4. (two words) The trend rate of growth can be defined as the long-run average rate of growth of the ________ of an economy over time.
  4. 5. (two words) _______ in an economy occurs when there is weak aggregate demand, meaning that the short-run aggregate supply is larger than the aggregate demand, creating a negative output gap.
  5. 7. (two words) A positive output gap exists when the economy is operating beyond what state?
  6. 8. An example of a positive supply-side shock is when there is a fall in oil and other commodity prices that would increase the _______ curve, thus creating a positive output gap.
  7. 11. Two main problems that occur as a result of a positive output gap are _____ and cost-push inflation.
  8. 13. (two words) In some occasions, cost-push inflation is necessary to return the economy back to the ______ rate.
  9. 19. (two words) The difference between the actual level of real GDP and its estimated long-term value is known as?