Vocabulary

boost v – стимулировать, повышать

borrow v – брать взаймы

borrower n – должник, дебитор, заёмщик

borrowing n– заем, кредит

capacity n – мощность

productive ~ – производственная мощность

consumer n – потребитель

~ price index (CPI) – индекс потребительских цен

credit n – кредит, доверие, репутация

creditorsn– кредиторы, кредиторская задолженность

curve n – кривая (линия)

cutback n – сокращение, уменьшение

debt n – долг

bad ~ – безнадёжный долг

debtorsn– дебиторы, дебиторская задолженность

disinflation n – дисинфляция; замедление темпов инфляции

hyperinflation n – гиперинфляция

inflation n – инфляция

cost-push ~ – инфляция, обусловленная ростом издержек

demand-pull ~ – инфляция, вызванная превышением спроса над предложением

lend v – давать в займы, одалживать

lender n – кредитор, заимодавец

~ of last resort – кредитор последней инстанции

loan n – заём, суда, кредит

loan v – одалживать, давать в займы

~ out – выдавать заём

multiplier n – мультипликатор, коэффициент

recipient n – получатель

surplus n – избыток, профицит

GLOSSARY

• GDP chain price index is a measure that compares changes in the prices of all final goods during a given year to the prices of those goods in a base year.

• The consumer price index (CPI) is the most widely known price-level index. It measures the cost of purchasing a market basket of goods and services by a typical household during a lime period relative to the cost of the same bundle during a base year.

• Inflation is a situation in which a decline in the purchasing power of money results in a rise of the general price level.

• Cost-push inflation is an increase in the general price level resulting from an increase in the cost of production.

• Demand-pull inflation is caused by pressure on prices originating from the buyers' side of the market. In contrast, cost-push inflation is caused by pressure on prices originating from the sellers' Side- of the market.

• Deflation is a decrease in the general level of prices. During the early years of the Great Depression, there was deflation, and the CPI declined at about a double-digit rate.

• Disinflation is a reduction in the inflation rate. Between 1980 and 1986, there was disinflation. This does not mean that prices were falling, but only that the inflation rate fell.

• Hyperinflation is an extremely rapid rise in the general price level.

• Nominal income is income measured in actual money amounts. Measuring your purchasing power requires converting nominal income into real income, which is nominal income adjusted for inflation

• Nominal interest rate is the annual percentage amount of money that is earned on a sum loaned or disposed in a bank.

• The real interest rate is the nominal interest rate adjusted for inflation. If real interest rates are negative, lenders incur losses.

3.3. Economic business cycles and unemployment

DISCOVERING CONNECTIONS

1. Are there any jobs in your country which are in constant demand?

2. In which economic sectors have jobs disappeared / have been created?

3. What is the most difficult job you can imagine? And the most pleasant?

4. If you could choose any job in the world, what would it be? Why?

5. Are you optimistic or pessimistic about your own future? Do you expect the qualification you are currently studying for to get you a permanent job?

6. Do you see any areas in which a large number of jobs might realistically be created?

7. In your opinion, when there is high unemployment during a recession, should the government intervene in the economy to create jobs?

READING

Text 1

As you read the text, focus on various theories of business cycle.