The Business Cycle Crossword Puzzle

QUESTIONS LIST:

• expansion: phase with rising gdp, spending, and falling unemployment.
• peak: turning point where expansion ends and contraction begins.
• contraction: phase with slowing growth, less spending, and rising unemployment.
• trough: lowest turning point before recovery begins.
• output gap: difference between actual gdp and potential gdp.
• pro cyclical: variable that rises in expansions and falls in contractions.
• counter cyclical: variable that rises in contractions and falls in expansions.
• leading: indicators that move ahead of changes in gdp (e.g. share prices, building approvals).
• coincident: indicators that move at the same time as gdp (e.g. retail sales, new car registrations).
• lagging: indicators that follow after gdp changes (e.g. unemployment, cpi).
• cyclical: type of unemployment caused by weak demand during recessions.
• structural: unemployment from skills mismatch or technology changes.
• frictional: short-term unemployment while changing jobs.
• seasonal: joblessness due to regular seasonal factors.