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

to maintain steady growth aggregate demand

to favor activist/nonactivist policies full employment stabilization policies long-term policies

temporary changes income elasticity

to smooth consumption to offset changes

4. Change the following sentences into simple ones using the Subjective Infinitive Complex:

1, It is believed that optima! stabilization policy tends to stabilize nominal GNP. 2. It is reported that aggregate demand is stable. 3. It is expected that nominal wages will also decline a lot. 4. It was supposed that the effectiveness of active stabilization policies depended on the expectations of individual consumers and firms. 5. It is said that unemployment will persist.

4. Change the sentences according to the model:

Model: It proved that you were right.

You proved to be right.

1. It seems that the circumstances have become strange indeed. 2. It seems that this is not the right key. 3. It turned out that the expectations of individual consumers and firms changed. 4. It chanced that he understood how hard it was.

4. It appeared that this was an area of considerable dispute.

5. It seems that they don't understand how rapidly the labor market returns to equilibrium.

4. Translate into English:

1. Кажуть, що експедиція зібрала дуже цікавий матеріал про природні ресурси цього району. 2. Вважають, що еко­номісти дійшли згоди щодо ефективності грошово-кредит­ної попітики. З. Як повідомляють, податки зростуть. 4. Як відомо, можливість прогнозування е дуже важливою для організації економічної діяльності. 5. Здається, дедалі більше людей цікавляться економічними питаннями. 6. Сталося так, що тимчасові зміни в оподаткуванні вплинули на прибуток.

4. Communicative situations:

1. Speak about macroeconomic coordination problems.

2. Why do economists disagree on appropriate stabilization policies? Discuss it.

Lesson 28

THE NATIONAL DEBT

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

treasury bonds — казначейські облігації s e.g. Treasury bonds: Promissory notes (lOUs — I owe you) issued by the U.S. Treasury, national debt — державний борг

e.g. National debt: Accumulated debt of the government, liability — відповідальність, заборгованість, борг; пасив e.g. Liability: An obligation to make future payment; debt. But those same bonds are an asset to the people who hold them.

asset — актив

e.g. Asset is anything having exchange value in the market place; wealth.

internal debt — внутрішній борг

e.g. All of the debt held by U.S. households, institutions, and government entities is referred to as internal debt, external debt — зовнішній борг

e.g. All of the bonds held by foreign households and institutions is referred to as external debt.

refinancing — рефінансування, додаткове фінансування e.g. Refinancing: The issuance of new debt is payment of debt issued earlier.

deficit ceiling — максимальний розмір дефіциту e.g. Deficit ceilings are explicit limitations on the size of the annual budget deficit.

budget deficit — дефіцит бюджету e.g. The amount by which government expenditures exceed government revenues in a given time period. Is referred to as budjet deficit.

debt ceiling — максимальний розмір боргу e.g. An explicit, legislated limit on the amount of outs­tanding national debt is a debt ceiling.