Section 6 Review

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Across
  1. 2. This occurs when the printing of money gets out of control, and money loses its value at an unprecedented pace.
  2. 5. When unemployment is above the natural rate of unemployment, you have a ________________
  3. 6. This graph shows the correlation between inflation and unemployment. (In the short-run.)
  4. 9. An increase in the _________ will lower the interest rate in the short run.
  5. 12. Because of the use of Fiat money, you have to pay this regularly, which is the reduction in the value of money.
  6. 16. This is the ratio of Nominal GDP to the Money Supply.
  7. 19. An outward shift in the PPC is analogous to an rightward shift in the __________________ (Acronym)
  8. 20. This Monetary policy will shift the AD curve the right and includes Increasing the money supply.
  9. 21. When unemployment is below the natural rate of unemployment, you have a ________________
Down
  1. 1. This branch of Economics calls for monetary and fiscal policy to be used to correct aggregate output in the short run.
  2. 3. This is an accumulation of past government deficits, minus past budget surpluses.
  3. 4. This runs from October 1 to September 30th.
  4. 7. This results from increasing the money supply at too rapid a rate for a sustained period of time.
  5. 8. This happens when government spending drives down private sector spending by taking up the money supply.
  6. 10. This Monetary policy will shift the AD curve the Left and includes Decreasing the money supply.
  7. 11. This is government debt that is held by individuals and institutions outside of the government.
  8. 13. This results from decreasing the money supply at too rapid a rate for a sustained period of time.
  9. 14. This is when the government spends more money that it collects in taxes (the excess is often gained through borrowing.)
  10. 15. This is the belief that lowering tax rates will benefit the overall economy by incentivizing work and investment.
  11. 17. This type of inflation is caused by an increase of aggregate demand.
  12. 18. This type of inflation is caused by a significant increase in the price of an output with economy-wide implications (Gasoline)