Economics Unit 1

5. The theory that emphasizes the importance of free markets and limited government intervention.
7. The economic cycle consisting of production, income, and expenditure flows.
8. The cost of borrowing money or the return on savings.
9. The unequal distribution of income within a population.
10. A measure of a country's economic output adjusted for price changes (inflation or deflation).
12. The economic theory that emphasizes the role of government intervention in stabilizing the economy.
13. An economy that relies on trade with other nations to achieve growth and development.
19. A deliberate downward adjustment of a country's currency value in relation to other currencies.
21. When government spending exceeds government revenue.
24. The percentage of the labor force that is jobless and actively seeking employment.
26. The total expenditure by the government on goods and services.
27. The increase in the productive capacity of an economy over time.
28. The price of one country's currency in terms of another country's currency.
29. The total amount of money a government owes to lenders.
30. A policy tool used by governments to influence the economy through taxation and spending.

1. The ability of an economy to sustain economic growth without causing environmental degradation.
2. A period of declining economic activity, usually marked by two consecutive quarters of negative GDP growth.
3. The difference between a country's total exports and total imports.
4. A policy tool used by central banks to control the money supply and interest rates.
6. The sustained increase in the general price level of goods and services over time.
11. The total demand for goods and services in an economy at a given overall price level.
14. The efficiency with which inputs are converted into outputs.
15. A record of all economic transactions between residents of a country and the rest of the world.
16. The process by which businesses or other organizations develop international influence.
17. A tax on imports or exports between sovereign states.
18. The proportion of total income that is spent rather than saved.
20. The total market value of all final goods and services produced within a country in a given period.
22. The total supply of goods and services available to a particular market from producers.
23. The institution responsible for managing a country's money supply and interest rates.
25. A situation where the quantity of goods and services supplied equals the quantity demanded.