It. Give English equivalents of the following:

супроводжуватися зниженням цін та номінальної ппати повною мірою використовувати трудові ресурси здібності, що відповідають певній роботі

потенційне реальне виробництво

рівновага на ринку праці відповідна вакансія виробнича потужність спад виробництва шукати роботу

Ні. Fill in the blanks with appropriate words:

1. underestimate no corresponding vacancy looking for declining maximum increase

   If these productive ... are fully and efficiently employed, there is a ... amount that the economy can produce.

2. Frictional unemployment ... when indi­viduals leaving one job (or looking for a first one) do not immediately find a new job, even though there are vacancies in the economy. inputs

3. ... a job does not solve this unemp- results loyment problem this is ... .

4. Published unemployment data will ... the true unemployment rate because discouraged workers wil! have quit looking for jobs out of frustration.

5. As real wages fall, firms will increase their employment of workers and real output will ... ,

6. A recession will be accompanied by . prices and nominal wages.

4. Read and translate the text:

We begin our analysis of macroeconomic fluctuations by

examining the determinants of potential real output and

aggregate supply. This potential real output is determined by

the natural resources available to an economy, the technologies that it has developed or acquired, the amount of capital that it has accumulated, and the amount of labor it has available. If these productive inputs are fully and efficiently employed, there is a maximum amount that the economy can produce — its production possibilities.

Potential real output is the output that would be produced if all resources, including labor, were fully employed. Labor resources are fully employed when there is an equilibrium in each labor market. That is, when everyone who wants to work at the prevailing wage is able to work, labor is fully employed.

Full employment is associated with the amount of labor firms want to employ — labor demand — and the amount of time that individuals want to supply to the market, given the other uses to which these individuals can put their time — labor supply.

The real wage is the purchasing power of the wage payment, which is in turn the amount of money paid to workers per hour, week, or month of work.

Equilibrium in the labor market, as in any market, occurs when the amount willingly supplied is equal to the amount willingly demanded, that is, when the number of persons willing to work at a particular real wage is exactly equal to the number of persons that firms want to employ.

Unemployment occurs, because the real wage does not quickly adjust to a new equilibrium when the demand or supply of labor changes.

Frictional unemployment results when individuals leaving one job (or looking for a first job) do not immediately find a new job, even though there are vacancies in the economy.

Not all unemployment is frictional, however. Another part of unemployment is true unemployment — there are no job openings corresponding to those who are without work. Looking for a job does not solve this unemployment problem — there is no corresponding vacancy. Sometimes the lack of jobs is a consequence of the business cycle unemployment, but the lack of jobs may also correspond to a problem with skills and training (structural unemployment). For example, someone who doesn't have a high-school education may be willing to work but will probably have fewer job-related skills and thus fewer employment opportunities.

Published unemployment data will underestimate the true unemployment rate because discouraged workers will have quit looking for jobs out of frustration.

When labor is unemployed, however, nominal wages wifi eventually begin to decline. As they do, real wages will fall. As real wages fall, firms will increase their employment of workers and real output will increase. Thus a recession will be accompanied by declining prices and nominal wages, but the economy will eventually tend toward full employment and the production of potential real output {pp. 464—486)*.