2.5.3 Trade Cycle

Across

• 1. Parts of the trade cycle: A ... is when output and income fall, there is a fall in C and I. tax revenues fall, G on benefits increases and inflation declines (8)
• 4. Parts of the trade cycle: A .. is when there is high unemployment, low consumption, low investment and low imports (9)
• 5. The ... is a cycle or series of cycles of economic expansion or contraction (5, 5)
• 6. Parts of the trade cycle: A ... is when national income is high, economy working beyond full employment. Overheating is possible, C and I is high, tax revenue is high, wages and profits rise. Imports rise and inflation occurs (4)
• 7. Causes of trade cycle: ... shocks affect aggregate supply with there being a sharp rise in commodity prices (6, 4)