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  1. Make up your own dialogue using the following expressions:

to increase full employment unemployment nominal wages

equilibrium in the labor market to decline to be accompanied purchasing power recession

  1. Replace the attributive clauses by the Infinitive:

Model: This is the real wage which must be paid to workers per hour, week, or month of work.

This is the real wage to be paid to workers per hour, week or month of work.

1. These are macroeconomic fluctuations which will be examined by experts. 2. The question of full employment which will be discussed later is rather difficult. 3. This is potential real output which must be determined by the natural resources available to an economy. 4. The data about unemployment which must be obtained are of great importance. 5. This is recession which will be accompanied by declining prices and nominal wages.

  1. Make sentences with seem and appear according to the model:

Model: Are they discussing equilibrium in the labor market?

They seem to be discussing equilibrium in the labor market.

1. Does the lack of jobs affect unemployment? It seems ....

  1. Have they received their wages? They seem ... . 3. Has he lost his job recently? He appears ... . A. Are they discussing the problem of full' employment? They seem ... . 5. Is he looking for a job now? He appears ... .

  1. Translate into English:

  1. Вони хотіли, щоб їм докладно розповіли про пробле­ми безробіття в західних країнах. 2. Це цікаве питання, яке спід обговорити на зборах. 3. Він першим отримав заробітну плату у відділі. 4. Він пояснить вам, як повною мірою вико­ристати трудові ресурси. 5. Вони хотіли, щоб їм пояснили різницю між реальною та номінальною заробітною пла­тою.

  1. Communicative situations:

  1. Economists have suggested that the frictional rate of employment has increased during the past two decades. Why might this have occurred?

  2. Would the costs associated with unemployment be the same for a teenager as for a head of a household?

Do the unemployment statistics treat these two persons differently? Should they?

  1. What does the equilibrium in the labor market depend on? Why?

Lesson 26 AGGREGATE DEMAND

  1. Read and memorize the following words, word- combinations and word-groups:

aggregate demand — сукупний попит e.g. When price and nominal-wage adjustments are slow, changes in aggregate demand will lead to changes in actual real output.

to employ fully productive resources — повністю викори­стовувати виробничі ресурси

e.g. Aggregate demand and aggregate supply are useful concepts only if they help us understand why an economy may not always fully employ its productive resources, have price stability, or grow at an acceptable rate.

individual consumption — індивідуальне споживання e.g. Individual consumption is directly influenced by individual income.

to save income — накопичувати прибуток e.g. Individuals (and economies that are not engaged in international trade) can only do two things with their income: they can consume it or save it.

to smooth consumption — вирівнювати споживання e.g. Aggregate consumption may differ from aggregate real output because individuals want to save in order to smooth consumption relative to income.

life-cycle consumption behavior — режим споживання упродовж життя

e.g. In pari, current consumption will be based on our best estimate of our lifetime income and how long we expect to live. This kind of smoothing behavior is a life-cycle consumption behavior, saving — заощадження

e.g. Saving allows people to transfer consumption from the present to the future, investment — інвестиції

e.g. If desired investment exceeds desired saving, firms will find that their inventories are lower than they want them to be.

inventories — оборотні фонди; (товарно-)матерїальні запаси

e.g. If desired aggregate saving exceeds desired aggregate investment, firms will accumulate unwanted inventories, adjustment — регулювання

e.g. Many different kinds of adjustment might occur. Prices may change. Interest rates may change.

fiscal policy (activities) — фіскальна політика (діяльність); фінансово-бюджетна політика

e.g. Government spending, taxes, and subsidies are the fiscal activities of government.

marginal propensity to consume — гранична схильність до споживання

e.g. Economists define the marginal propensity to consume (MPC) as the change in consumption per dollar change in income.

capital stock — основний капітал to offset depreciation — компенсувати знецінення e.g. Investment occurs when real output is used to increase the existing capital stock or offset depreciation.