Across
- 2. The tendency of competition to cause individuals and firms to unintentionally but quite effectively promote the interest of society even when each individual or firm is only attempting to pursue.
- 4. A method for determining the number of years it will take for some measure to double, given its annual percentage increase.
- 6. The amount of goods and services that can be purchased with nominal income during some period of time; nominal income adjusted for inflation.
- 10. A situation in a severe recession in which the central bank’s injection of additional currency(liquidity) into the financial system has little or no additional positive impact on lending, borrowing, investment, or aggregate demand.
- 12. Unemployment of workers whose skills are not demanded by employers, who lack sufficient skill to obtain employment, or who cannot easily move to locations where jobs are available.
- 15. The total market value of all final goods and services produced annually within the boundaries of a nation
- 18. The most narrowly defined money supply, equal to currency in the hnads of the public, checkable deposits, and savings deposits held at commercial banks and thrifts.
- 20. The trading of votes by legislators to secure a favorable outcome on decisions concerning the provision of public goods and quasi-public goods.
- 21. A rise in the general level of prices in an economy; an increase in an economy’s price level.
- 24. An index that measures the prices of a fixed “market basket” of some 300 goods and services bought by a “typical “ consumer
- 25. A type of unemployment caused by insufficient total spending (insufficient aggregate demand) and which typically begins in the recession phase of the business cycle.
Down
- 1. The method that adds all expenditures made for final goods and final services to measure the gross domestic product.
- 3. Fraction (or percentage) of disposable income that households spend on consumer goods; consumption divided by disposable income.
- 5. A type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs.
- 7. A schedule or curve that shows the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.
- 8. Actual gross domestic product minus potential output; may be either a positive amount or a negative amount.
- 9. Recurring increase and decrease in the level of economic activity over periods of years; consists of peak, recession, trough, and expansion phases.
- 11. An extremely high rate of inflation, usually defined as an inflation rate in excess of 50 percent per month.
- 13. An Ωoutward shift in the production possibilities curve that results from an increase in resource supplies or quality or an improvement in technology.
- 14. The generalization that any 1-percentage-point rise in the unemployment rate above the full-employment rate of unemployment is associated with a rise in the negative GDP gap by 2 percent of potential output (potential GDP).
- 16. The point in a business cycle at which business activity has reached a temporary minimum; the point at which a recession ends and an expansion (recovery) begins. At the trough, the economy experiences substantial unemployment and real GDP is less than potential output.
- 17. The number of dollars received by an individual or group for its resources during some period of time.
- 19. The number of dollars received by an individual or group for its resources during some period of time.
- 22. Changes in government spending and tax collections designed to achieve full employment, price stability, and economic growth; also called discretionary fiscal policy.
- 23. Created in Britain to explain the change in the country