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V. Complete each sentence with a word or phrase from the box:

disrupt, go on strike, gross national product, knock-on effect, miner, sharply, stagflation, unrest.

  1. The total value of a country’s goods and services consumed in one year is called the

  2. If something done affects something else, which then again affects something else, we call this a ………………..

  3. If people are not happy with their government, there may be poli­tical

4. Being a and digging underground to bring out

minerals must be very dangerous.

5. Some people as a way of showing their unhappiness

with work conditions or pay.

6. If we have , there is a sharp drop in production of

some goods causing their price to rise.

7. A fallen tree can the electricity supply to thousands

of homes.

8. Prices have risen but unfortunately wages haven’t.

VI. Now read the text again and choose the best way to finish each sentence.

1. An economic shock causes ...

A. prices to rise.

B. a demand or supply shift.

C. demand to fall.

2. Demand-side shocks of a domestic nature ...

A. are caused by events in another country.

B. are only caused because of a fall in property prices.

C. are caused by events at home.

3. The Great Depression is an example of...

A. an external demand-side shock.

B. an external supply-side shock.

C. a domestic demand-side shock.

4. Supply-side shocks can cause ...

A. a fall in variable costs.

B. an increase in variable costs.

C. a fall in fixed costs.

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5. Stagflation is when ...

A. prices fall but output rises.

B. prices rise and output rises.

C. prices rise and output falls.

6. A positive supply-side shock is when ...

A. prices fall but output rises.

B. prices rise and output rises.

C. prices rise and output falls.

VII. Discuss these questions with your partner.

  • What do you think makes an economy grow?

  • Economists sometimes talk about economic shocks.

  • What do you think this might mean?

  • What might cause a shock to the economy?

VI. Say what you have learned about:

  • Living standard for different families

  • Gross national product (GNP)

  • Sharp increase in growth – boom

  • Training and education – necessary factors for economic growth

  • Right balance between consumption and saving

Think and give extensive answers.

Grammar exercises

VII. Translate the sentences. Practise the use of Infinitives in different functions (§19).

1. Although money is a helpful tool to measure output, there may arise certain difficulties. 2. Acting through their governments, societies can decide how much they want to take measures to change the distribution of income. 3. Economists consider capital to be the property owned by an individual or corporation. 4. Government regulates the level of aggregate demand in order to maintain full employment. 5. As taxes affect levels of prices for various goods, they influence the way to allocate resources in economy. 6. To calculate depreciation is necessary to know the value of the assets of an enterprise. 7. Stabilization policy is government actions to control the level of output in order to keep the

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GNP close to its full-employment level. 8. To run a business is to plan its activities and to determine all operations. 9. To use food stamps was common practice in many countries in wartime. 10. In order to earn income, we have to work hard.

VIII. Supply the correct forms of the verbs (§11). Translate the sentences.

1. The economists (to discuss) several reasons why only past (to be) unsuccessful. 2. State planning and central control of the economy often (to mean) that the state (to have) monopoly of important goods. 3. Economists (to say) that situation (can) last for a long period of time. 4. Money (to be) generally accepted means of payment. 5. Politicians and economists (to be) against restraining of money. 6. Most economists (to agree) that the government (to play) a very important role in speeding up economic development. 7. The last year inflation rate (to find) to be significant. 8. People who (to face) unemployment probably (not to make) immediate downward in their standard living.