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Econ 510 CH 2/3 Spring 2013

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Across
1.A Blank trough is a relatively large negative deviation from trend in real GDP.
5.Negative relationship between inflation and unemployment: ___
6.To study a macroeconomy, we need to use Blank data because we want to get rid of the illusion of price effects.
8.Suppose that GDP is equal to 1000, Blank is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Private savings must equal 250
10.The GDP deflator is a Blank measure of the price level than the CPI because it covers investment.
12.A problem in measuring GDP is that it does not take into account _____ matters.
13.___ variable: neither leads or lags GDP
16.___ approach to GDP calculation: total spending on all final goods and services in the economy (do not count intermediate goods).
17.Average labor Blank is computed as the ratio of real GDP to the level of employment.
19.The CPI overstates price increases since it ignores ___ of households. It is a fallacy to assume that if the price increases, the consumer will use the same amount of the good.
20.____ approach to GDP calculation: sum of all the value-added in the economy (do not count intermediate goods).
23.Blank spending is much more volatile than consumption spending.
24.___ variable: if GDP is useful in predicting future path x
25.A Blank is a series of above trend values.
26.A problem with measuring GDP is that ___ production is difficult to measure.
27.___ approach to GDP calculation add up all incomes received by economic agents contribution to production.
28.A problem in measuring GDP is that it leaves out ___ activity
29.___ variable: if x is useful in predicting future path GDP
30.A Blank is a series of below trend values.
Down
2.Suppose that GDP is equal to 1000, national saving is equal to 200, the Blank deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal 300
3.The GDP deflator understates price increases since it ignores reduction in ___ as a result of substitution
4.___ is an example of a procyclical, lagging variable
7.Additions to the nation's Blank are brought about through investment.
9.The components of Blank expenditures include services, nondurable goods, and durable goods.
11.The Blank components of GDP include investment, consumption, and net exports.
14.Business cycle Blank refers to the property that when real GDP is above trend, it tends to stay above trend, and when it is below trend, it tends to stay below trend.
15.___ is an example of a procyclical, coincident variable
18.Difficulties in determining the cyclical pattern in real wage rates from aggregate data are primarily caused by biases due to variations in the Blank of the labor force over the business cycle.
21.Following Problems in measuring inflation: ___ prices changes, quality of goods change over time and how to take into account of new goods
22.In the labor force, we include Blank people.

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