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

to stabilize the economy to enter

the expansion phase to fight

recession and inflation to control

taxing and spending to provide

effective tools monetary policies

to reduce inflation

to fuel inflation to

increase taxes fiscal

policies to reduce

taxes

X. Change the following sentences using the Passive Voice:

Model: At that time the government was controlling taxing. Taxing was being controlled by the government at that time.

1. They were stabilizing the economy during the last two years. 2. Congress was reducing inflation the whole year. 3. The President was applying fiscal policy, while they controlled taxing and spending. 4. They were providing effective tools to fight recession and inflation. 5. When the government borrowed money, it was reducing taxes.

XI. Ask when and what-questions using the Passive Voice:

Model: The company was being managed extremely well, when he was president.

When was the company being managed extremely well?

1. Fiscal policy was being applied by the government successfully at that time. 2. Taxing was being controlled by the Congress. 3. Money was being spent by individuals and business firms for the things they wanted, when taxes were reduced. 4. Effective tools were being provided, when go­vernment fought recession and inflation. 5. Debts were being financed by the federal government, while they printed money.

XII. Translate into English using the Past Continuous Tense (the Passive Voice):

1. Рівень податку змінювався з липня по вересень мину­лого року. 2. Витрати цього підприємства зростали, тоді як економіка вступала в нову фазу. 3. За час інфляції прова­дилася фіскальна політика. 4. Коли уряд робив позики та випускав нові гроші, податки збільшувалися. 5. Під час оздо­ровлення економіки урядом випуск грошової маси змен­шувався.

XIII. Communicative situations:

1. Although economists know a great deal about how to stabilize the economy, our system still goes through periods of expansion and contraction. Describe some of the problems facing decision makers who are trying to use fiscal and monetary policies to keep the economy growing steadily but smoothy.

2. As the economy moves from «recession» to «expansion», what is likely to happen to wages, investment, employment, profits?

3. During which phase of the cycle («recession» or «expan­sion») is production increasing? Why?

Lesson 11

THE GLOBAL ECONOMY

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

to benefit — отримувати користь

e.g. The countries benefit because trade enables them to exchange things they don't need for the things they do need and want.

transaction — справа, угода; ведення ділових операцій e.g. Nations trade with one another for the same reason that individuals and business firms within a country trade: both sides expect to benefit from the transaction,

advantage — перевага

e.g. A nation has a comparative advantage in the production of an item when its opportunity costs to produce the item are lower than those of other nations,

to restrict — обмежувати

e.g. Despite the many advantages of trade between nations, most countries, including our own, often restrict that trade in a number of ways.

revenue — прибуток; джерело прибутку

e.g. Through most of its history (until 1910), the United States looked to the revenue tariff as its principal source of income,

to levy — оподаткувати

e.g. Protective tariffs are levied to protect a domestic industry from foreign competition, surplus — надлишок

e.g. Both countries expect to benefit from the transaction, because trade enables them to exchange their surplus goods and services

revenue tariff — тариф на прибуток e.g. Revenue tariff are levied as a way to raise money as a principal source of income

protective tariff — пільговий тариф для вітчизняного ви­робника

e.g. The goal of the protective tariff is to make the foreign product more expensive than a similar item produced in the country.

dumping — демпінг; розвантажування

e.g. Selling the same product for a lower price abroad than at home is called dumping.

administrative red tape — адміністративне регулювання e.g. Administrative red tape is the deliberate use of governmental rules and regulations to make it difficult to import goods from abroad.