Figure 1: Demand and Supply in the money market

Demand for money

78Macmillan Guide to Economics Unit is

В Comprehension

Now read the text again and decide whether these statements are true or false.

1. When the government sets interest rates, commercial banks must set

Before you read 13

What does economics study? 17

What are 18

microeconomics and macroeconomics ? 18

Before you listen 20

Before you read 22

History of economic thought 23

Before you listen 26

Before you read 27

Econometrics 28

Before you listen 29

Before you read 33

The law of demand 34

Before you listen 35

Unit 40

Before you read 40

The traditional economy 40

Before you listen 41

Before you read 43

The market economy 43

Before you listen 44

The planned economy 46

Before you listen 51

Before you read 56

Before you listen 59

Revision Vocabulary Units 1 to 4 61

Before you read 63

Consumer choices 65

Before you listen 75

Before you read 77

Costs and supply 77

Before you listen 78

Unit 80

Before you read 80

Market structure and competition 80

Before you listen 81

Before you read 82

Monopolies 82

Unit 87

Before you read 87

The labour market 87

Before you listen 88

Before you read 89

Supply of labour 89

Before you listen 91

44Unit 93

45Before you read 93

70Factors of production 93

85Before you listen 95

Before you read 99

Division of labour 100

Before you listen 101

Revision Vocabulary Units 5 to 8 104

Before you read 104

Surplus 105

Before you listen 106

Before you read 111

Price discrimination 111

Before you listen 112

Welfare economics 114

Before you listen 117

Before you read 118

Government revenue and spending 118

Before you listen 119

Before you read 121

Wealth, income and inequality 122

Before you listen 124

Before you read 125

Poverty 126

Before you listen 130

Macroeconomics 133

Before you listen 134

Before you read 135

ф D Vocabulary 135

Aggregate demand and aggregate supply 135

BP E Comprehension 137

Before you listen 137

0 F Listening *))) 137

ff G Speaking 138

Task 138

Revision Vocabulary Units 9 to 12 140

Unit 141

Before you read 141

Money 141

^ В Comprehension 142

Before you listen 142

В с Listening Ц))) 142

Before you read 142

0 D Vocabulary 143

Banks 148

В E Comprehension 149

Before you listen 149

F Listening Ц))) 149

G Speaking 150

Unit 151

Before you read 151

ff A Vocabulary 151

Fiscal policy 151

P В Comprehension 152

Before you listen 152

С Listening 4))) 152

Before you read 153

0 D Vocabulary 153

Monetary policy 153

Before you listen 156

rehension 156

Before you read 159

A Vocabulary 159

Interest rates and the money market 159

В Comprehension 160

С Listening H))) 165

Before you read 166

fiJ D Vocabulary 166

Economic shocks 166

Before you listen 169

G Speaking 170

Before you read 171

fif A Vocabulary 171

Inflation 171

Before you listen 173

Before you read 175

ff D Vocabulary 175

Unemployment 175

Before you listen 176

F Listening H))) 176

E Comprehension 176

G Speaking 176

9 H Writing 177

Revision Vocabulary Units 13 to 16 178

Unit 179

Before you read 179

Economic growth 180

9 В Comprehension 182

Before you listen 182

ff С Listening Ц))) 183

Before you read 183

ff D Vocabulary 183

The business cycle 184

fi? E Comprehension 185

Before you listen 185

F Listening И))) 186

H Writing 186

Before you read 187

f A Vocabulary 187

The open economy 187

? В Comprehension 188

Before you listen 189

С Listening 4))) 190

Before you read 190

BP D Vocabulary 190

Exchange rates 191

0 E Comprehension 193

Before you listen 193

F Listening H))) 194

G Speaking 195

Task 195

Before you read 196

A Vocabulary 196

Exchange rate mechanisms 196

й В Comprehension 197

Before you listen 197

0 С Listening 4))) 197

Before you read 198

9 D Vocabulary 198

International trade 198

Before you listen 199

В F Listening 4))) 199

G Speaking 200

Task 200

Unit 201

Before you read 201

В A Vocabulary 201

Less developed countries 202

в В Comprehension 203

Before you listen 203

0 С Listening *))) 203

Before you read 203

В D Vocabulary 203

The Russian economy in the 19th century 204

fij E Comprehension 205

Before you listen 205

F Listening 4))) 205

Task 207

H Writing 207

A Vocabulary 207

в? В Comprehension 209

Before you listen 209

0 С Listening 4))) 209

Before you read 209

ff D Vocabulary 209

Russia's foreign trade 210

9 E Comprehension 211

Before you listen 211

Revision Vocabulary Units 17 to 21 213

2. At the end of each day banks usually have less money than

they need. T □ / F □

Before you listen

Discuss the following with your partner.

Read the summary which explains what open market operations are. Try to complete the gaps with words from the box.

Л

■ borrow ■ decreases ■ lend