Seminar 1: The business cycle

I. Listening
1. You will hear a short presentation on the state of the German economy.
(BBC Words in the News ! "ugust #$$%& German economy reco'ering(
"nswer the following )uestions.
1. Why is Germanys economic recovery a sign that the global economy may be
reviving?
2. What two indicators show an upward trend in Germanys economy?
"s you listen find words or e*pressions in the te*t which mean the
following+
1. is very much linked to, depends on ........................................................................
2. seriously damaged ...........................................................................
3. deep economic recession, economic collapse ....................................
. recovering, reviving, improving ...............................................
!. production o" goods in large #uantities ......................................................
$. coming% happening one a"ter the other .......................................................
&. indicate that the economic situation will improve ................................................
#. You will hear a short presentation on the way recession has affected the
world,s most 'alua-le -rands. (BBC Words in the News # .cto-er #$$%&
Most valuable brands(
"s you listen find words or e*pressions in the te*t which mean the
following+
1. makes an attempt to do it ..............................................................
2. most success"ul product% manu"acturer ............................................
3. has led to signi"icant changes in the hierarchy o"
companies ...............................................................................................................
..............................
. have been a""ected by higher than usual decreases or
reductions ...................................................................
!. companies that manu"acture e'pensive goods that are nice to have but are not
necessary, e.g. (ewellery .........................................................................................
$. the likely conclusion would be
that ...................................................................................
&. looking "or cheaper deals ......................................................................................
/or each )uestion mar0 one letter (" B or C( for the correct answer.
1. )he worlds top brands have seen
*. a considerable increase since the beginning o" the recession
+. a considerable decrease since the beginning o" the recession
,. no signi"icant changes
2. -uring economic downturns consumers tend to
*. reduce spending on lu'ury products
+. invest in (ewellery, watches and e'pensive clothing
,. not change their buying habits
3. )he Google brand is doing well because
*. many people are unemployed and have time to browse the internet
+. the internet is becoming increasingly popular among young people
,. many people are browsing the internet in search o" cheaper deals as a result o"
the economic crisis
1. You will hear a short presentation on the situation of unemployment in the
23. (BBC Words in the News 1$ "pril #$$%& British job losses)
/or each )uestion mar0 one letter (" B or C( for the correct answer.
1. )here are currently
*. more than two million unemployed people in Great +ritain
+. less than two million unemployed people in Great +ritain
,. e'actly two million unemployed people in Great +ritain
2. .oblessness is a""ecting
*. a large variety o" pro"essionals and age groups
+. a large variety o" pro"essionals especially among young people
,. young people but in a small number o" "ields
3. +ritish e'perts believe that
*. unemployment will increase sharply in the near "uture due to the "act that many
university graduates will start seeking employment
+. unemployment will remain constant in the near "uture
,. unemployment will "all
. /ince 1012 unemployment in Great +ritain
*. has always been higher than three million
+. has never reached the three million mark
,. has been constant around the three million "igure
"s you listen find words or e*pressions in the te*t which mean the
following+
1. how #uickly the number o" people who become unemployed is rising in +ritain
2. sacked, made redundant, le"t without a (ob
3. at very short notice, with very little advance warning
. e'ceeded, or become more than two million people
!. when employees lose their (obs because their employers no longer need them
$. in many sectors o" industry and trade, as well as other organisations and (ob
types
&. preparing 3"or something unpleasant or di""icult4
1. saying that something will happen
0. here, see%have
4ummari5e the te*t in less than 6$ words.
II. 7eading
1. 7ead the following te*t a-out the way the glo-al downturn has affected
'arious countries.

5n the rich world the (ob losses are starkest in *merica, where the recession began.
5ts "le'ible labour market has shed .m (obs since the downturn began in
-ecember 222&, including more than $22,222 in each o" the past three months. )he
unemployment rate (umped to 1.16 in 7ebruary, the highest in a #uarter8century. *n
*merican who loses his (ob today has less o" a chance o" "inding another one than
at any time since records began hal" a century ago. )hat is especially worrying
when the "inances o" many households have come to depend on two "ull incomes.
+ut it is already clear that unemployment will strike hard "ar beyond *merica and
+ritain. 5n .apan output is plunging "aster than in other rich economies. *lthough
unemployment is low, rapid (ob losses among .apans army o" temporary workers
are e'posing the un"airness o" a two8tier labour market and straining an egalitarian
society.
5n 9urope (oblessness has grown "astest in places such as /pain and 5reland, where
building booms have crashed, but has only begun to edge up elsewhere. )he
unemployment rates in many 9uropean countries are below *mericas, but that may
be because their more rigid labour markets ad(ust more slowly to "alling demand.
Given how "ast 9uropean economies are shrinking, nobody doubts that worse lies
ahead. +y the end o" 2212, unemployment in much o" the rich world is likely to be
above 126. 3)he (ob crisis, 12 :arch 2220, )he 9conomist4
/ind synonyms to the underlined words and e*pressions
7ephrase the following sentences+
5n the rich world the (ob losses are starkest in *merica, where the recession began.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
5n .apan output is plunging "aster than in other rich economies.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;.
)he unemployment rate (umped to 1.16 in 7ebruary, the highest in a #uarter
century.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;.
5n 9urope (oblessness has grown "astest in places such as /pain and 5reland, where
building booms have crashed, but has only begun to edge up elsewhere.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;..
/or each )uestion mar0 one letter (" B or C( for the correct answer.
1. <nemployment in the <nited /tates
*. has increased by almost .! million in the past two years
+. increased by more than 16 in 7ebruary this year
,. has increased by $22,222 in the past three months
2. )wenty years ago, an unemployed *merican had
*. higher chances o" "inding a (ob than he has today
+. lower chances o" "inding a (ob than he has today
,. as many chances o" "inding a (ob as he has today
3. <nemployment in /pain and 5reland has been caused by
*. dramatic changes on the stock e'change
+. (ob losses in the construction sector
,. a general decline in the demand "or goods and services
Identify all instances of 8ast 9ense 4imple and 8resent 8erfect 4imple
used in the te*t. Comment on their use.
Write a paragraph in which to e*plain the connection -etween the
credit crunch and :o- losses in construction. (6$ words(
Why is unemployment lower in ;urope than in "merica< Comment on
the following sentence+ their =the ;uropean countries,> more rigid
la-our mar0ets ad:ust more slowly to falling demand.
?escri-e the current unemployment situation in your country. Which
sectors are most affected< What should the go'ernment do in order to
help the unemployed<
=ey words> credit crunch, spend, save, consumption, demand, lay o"", production,
(obless, (oblessness, subsidies, social security.
#. 7ead the following te*t a-out the state of the "merican economy.
)he <nited /tates economy began growing again in the third #uarter o" the year,
according to new o""icial "igures. )he economy grew by 2.06, an annual rate o"
3.!6 which is the "irst sign o" improvement in more than a year. *ndrew Walker
reports>
)he "igures suggest the recession in the </ is over and a recovery underway.
/pending by consumers increased "or most types o" goods and services, including
cars. +usiness investment also rose "or the "irst time in two years. +ut there are
concerns that this improvement is too dependent on government spending, such as
subsidies to replace old cars. ,ertainly the </ )reasury /ecretary, )im Geithner,
was not ready to claim victory in tackling the recession.
)im Geithner> ?+ut this is (ust a beginning. <nemployment remains unacceptably
high. 7or every person out o" work, "or every "amily "acing "oreclosure, "or every
small business "acing a credit crunch, the recession remains alive and acute?.
*mong the other leading developed economies, 7rance, Germany and .apan
returned to economic growth three months earlier than the </, though the downturn
was deeper in Germany and .apan. +ritain is the only other ma(or economy to
report its per"ormance "or the third #uarter. <nlike the </, +ritain showed a
continued decline. )he global picture is thus one o" a widening recovery. +ut it has
not reached everywhere and it is not particularly strong.
/ind words or e*pressions in the te*t which mean the following+
the process o" getting the economy back to its previous healthy condition has begun
.............................................................................................
people who buy goods
........................................................................................
money given 3usually by the government4 to help to pay "or something
....................................................................................
dealing with and trying to "ind a solution to the economic di""iculties o" the country
..........................................................................................................
too great to be accepted or approved o"
...........................................................................................................
dealing with the prospect o" losing their houses because they cannot a""ord to pay
back the loan the bank gave them to buy it
.............................................................................................................
still getting worse, not improving
...........................................................................................................
8ro'ide definitions for the underlined words and e*pressions and then
use these words in sentences of your own.
What are the signs of economic reco'ery mentioned in the te*t<
What are the pro-lems still indicati'e of the recession not -eing o'er
in the 2nited 4tates<
Comment on the following sentence+ /or e'ery person out of wor0 for
e'ery family facing foreclosure for e'ery small -usiness facing a credit
crunch the recession remains ali'e and acute.
Identify all instances of 8ast 9ense 4imple used in the te*t. What is
their infiniti'e form<
1. 7ead the following te*t and answer the )uestions that follow it.
@omania will receive an aid package worth A2&bn "rom a group o" key 314;...
including the 5:7 and the 9<. 5t?s the "i"th 9astern 9uropean country to 324 ;.. help
to deal with the economic downturn, a"ter <kraine, /erbia, Batvia and Cungary.
Dana Bungescu reports>
*"ter two weeks o" intensive talks in @omania, the 334;; o" the 5:7 mission .e""rey
7ranks said there was agreement on an overall aid package worth twenty seven
billion dollars, most o" which will come "rom the 5:7 and the 9<. )he aim o" the 34
;.. is to "inance the country?s gaping budget de"icit and improve investors?
con"idence, a"ter a sharp drop in "oreign capital 3!4 ;;.
5n (ust a "ew months, @omania?s economic "ate has turned. 7rom a country which
last year registered the 9<?s highest growth rate, it?s now shedding thousands o"
(obs, mainly in the car and steel sectors, and "acing the collapse o" a property 3$4
;; .
)he bailout may give some temporary relie" to the economy, but in an
embarrassment to the centre8le"t governing coalition which came to power late last
year promising to raise wages and pensions in what remains one o" the 9<?s
poorest countries. /ome trade unions are reluctantly backing the deal, but others
are threatening strikes i" spending 3&4 ;.. are enacted.
Choose the correct word to fill each gap from " B C or ?
1 * borrowers + lenders ,
creditors
- debtors
2 * seek + ask , look - search
3 * head + manager , ruler - chie"
* gi"t + subsidy , loan - borrowing
! * in"lows + incomes , out"lows - outgoings
$ * growth + boom , rise - increase
& *
decreases
+ increases , "alls - cuts
What does the I@/ stand for< What a-out the ;2<
/or each )uestion mar0 one letter (" B or C( for the correct answer.
1. *ccording to the te't, @omania is to
*. borrow 2& billion dollars "rom the 5:7 and the 9<.
+. lend 2& billion dollars to the 5:7 and the 9<.
,. borrow 2& billion dollars "rom <kraine, /erbia, Batvia and Cungary.
2. *ccording to the te't, @omania is currently
*. growing rapidly
+. e'periencing a growing number o" unemployed
,. developing its car and steel sectors
3. )he aid package is meant as a
*. permanent solution to @omanias economic problems
+. temporary solution to @omanias economic problems
,. way to increase wages and pensions in @omania.
Identify all instances of 8resent 9ense Continuous used in the te*t and
e*plain their usage.
A. 7ead the te*t -elow and answer the )uestions that follow it.
EGood evening and welcome 314 ;; the 7inance Frogramme. )onight, we look at
one o" the most amaGing weeks on the markets in living memory. 5t started on
H:eltdown :onday I /eptember 1!th I as soon as news o" the collapse o" Behman
+rothers bank came 324 ;;;;. )his was the biggest bankruptcy in </ history,
with Behmans declaring debts o" $13 billion dollars. 5nvestors around the world
panicked and share prices around the world plummeted.
*s one bank "ell, the </ 7ederal @eserve stepped in to rescue *5G, the insurance
"irm. )his dramatic 334 ;;;;. was made on Wednesday to restore con"idence in
the system and prevent "urther panic on the markets. *nd it wasnt only the </ who
were worried about the stability o" the "inancial markets. )he <= remembers 34
;;;; too well the run on Jorthern @ock last /eptember. *s the share price in
the Cali"a' +ank o" /cotland dropped to new lows, the government decided to
intervene. 5t ignored competition laws and encouraged the creation o" a new
Hsuperbank. )he K12 billion takeover 3!4 ;;;. Bloyds )/+ o" C+D/, the <=s
biggest mortgage lender, was announced on )hursday. )hen came the news that
the </ government was ready to buy billions o" dollars o" </ banks bad mortgage
related loans, and by the end o" the week, the markets rallied.
Dn tonights programme we ask> why? 5s it only the banks themselves who are to
blame "or the global economic crisis I not only 3$4 ;;;;;. money to people
who cannot repay their debts in last years sub8prime mortgage crisis but also
developing a culture o" high risk investments and unsustainable borrowing? Dr is
the public also partially to blame, living 3&4 ;;;; credit, buying their i8phones
with money they dont have. :any o" us might "eel that the city H"at cats and their
huge bonuses dont deserve our pity. We shudder to think o" the dangers o" another
bank collapsing, but at the same time, we wonder whether ta'8payers money
should be spent rescuing the banks 314 ;;;;; a crisis o" their own making.
/ill in the -lan0s with the missing words.
7ephrase the following sentences+
5nvestors around the world panicked and share prices around the world plummeted.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
;;;;;;
*s the share price in the Cali"a' +ank o" /cotland dropped to new lows, the
government decided to intervene.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
;;;;;;
3; 4 by the end o" the week, the markets rallied.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
;;;;;;;;;;.
*s one bank "ell, the </ 7ederal @eserve stepped in to rescue *5G, an insurance
"irm.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
;;;;;;;;..
We wonder whether ta'8payers money should be spent rescuing the banks "rom a
crisis o" their own making.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
;;;;;;;;;;;
4ummari5e the te*t in 1$$ words.
Comment on the following sentences+
5s it only the banks themselves who are to blame "or the global economic crisis I not
only lending money to people who cannot repay their debts in last years sub8prime
mortgage crisis but also developing a culture o" high risk investments and
unsustainable borrowing? Dr is the public also partially to blame, living on credit,
buying their i8phones with money they dont have?
6. 7ead the te*t -elow a-out 8ortugal,s economic situation. In most of the
lines 1&1! there is one e*tra word. It is either grammatically incorrect or
does not fit in with the meaning of the te*t.
1 Fortugal?s caretaker prime minister .ose /ocrates says he has to reached agreement
on a
2 "inancial aid deal with the 9< and the 5nternational :onetary 7und. )he plan it includes
3 cuts in government spending as well as selling o"" state8owned assets. *lison @oberts
reports.
5n a statement with distinctly political overtones, no doubt with the ne't month?s
general
! election in mind, the prime minister on )uesday night "ocused more on what is not
$ included in the L&1 billion package than what is. )here will, he has assured the
& Fortuguese people he was addressing in a live television broadcast, be no more the
cuts in
1 public sector salaries, no abolition o" holiday and ,hristmas bonuses, and no "reeGe as
in
0 the lowest pensions 8 some o" which in Fortugal, are well below L322 a month.
12 9ssentially, :r /ocrates stressed, the plan so coincides with the austerity package
11 parliament has re(ected last month, leading to the minority /ocialist government?s
12 resignation, but is more "ar8reaching in some areas and calls "or rigorous analysis
and
13 monitoring o" progress. *nd, he said, it also includes some labour market re"orms
that
1 he did not detail. :ore in"ormation, and less politics, it is e'pected "rom 5:7 and 9<
1! o""icials on Wednesday. Fortugal?s right8o"8centre opposition parties, which would
1$ have been consulted by the visiting o""icials during the past two weeks, had said they
1& backed the bailout bid in principle.
III. ?escri-e the current economic situation in your country. What is the
economic outloo0 for your country<
=ey words> boom, peak, recession, recovery, spending, save, consumption,
production.