Across
- 3. Increase in GDP per capital over time- Illustrated as an increase in the LRAS and PPC
- 4. Government spending inclusive of government purchases, transfer payments, and interest payments in excess of tax revenue
- 6. Economic model which shows how increasing employment of labor while holding physical capital constant results in increases in real GDP subject to diminishing returns as employment increases
- 10. A trade-off between the inflation rate and the unemployment rate exists when inflationary expectations are held constant
- 13. Roads, Bridges, water systems, sewage treatment systems, electrical grids, communication networks, and other public investments
- 14. Accumulation of past government budget deficits
- 15. productivity, Economic output per unit of labor
- 16. Government policies which encourage saving and investment and foster long run economic growth such as investment tax credits, reduced taxes on interest income, and reduced capital gains taxes
- 17. Equation which shows that increases in an economy’s price level are a direct result of increases in an economy’s money supply in excess of an economy’s growth rate: MV = PQ.
Down
- 1. Peoples’ skills, abilities, and effort
- 2. Argument that government deficit spending results in higher interest rates which reduce private investment resulting in less aggregate demand in the short run and less economic growth in the long run
- 5. Government spending inclusive of government purchases, transfer payments, and interest payments less than tax revenue
- 7. Increase in the amount of physical capital available per worker
- 8. Investment in physical capital at a rate greater than the rate of capital depreciation results in capital accumulation
- 9. The rate at which the money supply is used to purchase an economy’s output
- 11. No relationship exists between the inflation rate and the natural rate of unemployment
- 12. Economic output per person