1. Match the words and expressions from the text with their definitions.

increase	a) an amount by which smth. is larger than smth.else;
demand	b) government policy designed to increase economic activity, by increasing the money supply or reducing taxation or interest rates;
supply	c) the money stock multiplied by its velocity;
excess	d) a period during which economic activity (spending, investments) falls, and unemployment rises;
inflation rate	e) the willingness and ability of consumers to purchase goods and services;
to push up	f) the percentage amount that prices (e.g. the retail price index) are higher than a previous year a rise, a growth, an upward trend;
interest rates	g) the willingness and ability to offer goods and services for sale;
disinflation	h) the cost of borrowing money, expressed as a percentage of the loan per period of time;
reflation	i) to make the price, value, etc. of smth. increase;
10. recession	j) government policy designed to slow down price inflation;

2. Find in the text English equivalents for the following.

повышение, падение спроса (покупательной способности), гиперинфляция, запросы опережают возможности экономики, предложить товары и услуги, уровень прибыли.

3. What kinds of inflation do the following definitions refer to?

1. single-digit inflation

2. inflation in two or three digits (e.g. 30,60 or 100 %)

3. inflation of several hundred or thousand per cent (e.g. in Germany in the 1920s, Serbia and Russia in the 1990s, etc.)

4. rising prices caused when total demand exceeds what a country can produce, even at full employment

5. when costs (rather than excessive demand) push up prices and wage: (e.g. excessive wage increases or increase in the price of oil).

4. Match the words in English with their Russian equivalents.

1. денежный запас

2. индекс розничных цен

3. инфляция издержек

4. налогообложение

5. потребительский спрос

6. государственные расходы

7. рефляция

8. совокупный спрос

9. инфляция спроса

10. занятость

1. demand-pull inflation

2. cost-push inflation disinflation

3. retail price index

4. money supply

5. consumer demand

6. reflation

7. aggregate demand

8. taxation

9. government spending

10. employment