Across
- 1. GDP adjusted for the price changes
- 4. When the price of one currency falls relative to another currency, the first currency has depreciated relative to the other one.
- 6. The demand for all goods and services by all households, business, governments, and foreigners
- 9. The addition to total revenue created by selling one additional unit of ouput.
- 10. The amount of one good that must be sacrificed to obtain an alternative good
- 11. A very high rate of inflation, under which prices go up very rapidly, often more than 1,000 percent in a year. This causes money to become a poor store of value.
- 12. A sustained decline in economic activity
- 15. The amount of output that results in no shortage or surplus, the amount of goods and service bought and sold in the economy
- 19. The lowest point of a business cycle
- 20. A measure of the price level, or the average level of prices.
- 21. Law that states that when the price of a product increases, the quantity supplied increases
- 26. Using resources to their maximum potential
- 28. The dollar value of production within a nation's border.
- 32. The supply of all goods and services by all producers in the economy
- 34. A hypothetical economy with no foreign trade
- 36. The ability to produce something more efficiently
- 37. A special tax imposed on imported goods.
- 39. Economic problems encountered by the nation as a whole
- 40. Fluctuations in real GDP around the trend value; also called economic fluctuations.
- 42. Situation that exists when government spending exceeds tax revenues
Down
- 2. The increase of the value of a currency in terms of another currency
- 3. Period in which a recession becomes prolonged and deep, involving high unemployment.
- 5. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
- 7. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
- 8. Changes, adjustments, and strategies that the governments implements in spending or taxation to achieve particular economic goals.
- 9. An industry structure in which there is only one seller for a product.
- 13. A sustained rise in most prices in the economy
- 14. The ability to produce something with a lower opportunity cost
- 16. An initial change in spending in the economy that will have a magnified, or multiplied, effect on income
- 17. Exports minus imports
- 18. Economic problems faced by individual units within the overall company
- 22. The dollar value of production by a country's citizens.
- 23. Theory that opposes Classical theory by emphasizing the short run and focusing on economies that are operating below full capacity
- 24. An economic system where supply and demand determine prices
- 25. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
- 27. The rate of interest the FED charges when it makes loans to depository institutions
- 29. Spending by the government that is less than tax revenues
- 30. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
- 31. Economy in which the central government dictates what will or will not be produced and who gets what
- 33. Law that states that when the price of a product increases, the quantity demanded decreases, ceteris paribus
- 35. Term used to describe the situation when the economy experiences inflation and a recession simultaneously
- 38. Money that is not backed by any precious commodity
- 41. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.