downturn peak downswing

contraction trough upturn

expansion recession recovery

depression slump boom

economic ______ vs. economic ______

depression / slumprecessiondownturn /downswingcontractiontrough

boomrecoveryupturnexpansionpeak

economic decline vs. economic growth

depression / slumprecessiondownturn /downswingcontractiontrough

→ MK, p 114

Vocabulary 1

boomrecoveryupturnexpansionpeak

Causes of the business cycleInternal (endogenous) theories:

beliefs about the futureinterest rates

wages and salaries ↓

consumption (demand = output) ↓

investments (grow)

External (exogenous) theories: technological, political and demographic changes

Read MK, pp 114-115: What causes the BC?

ComprehensionA downturn begins when ...... the demand for goods and services declines.People spend, and borrow money, when...... economic times are good and they feel

confident about the future.People tend to spend less when...... they are afraid of losing their jobs / becoming unemployed.When interes rates rise...... people have to pay more on their mortgage or rent (and so

consume less).Companies only invest while ...... consumption is increasing.Creative destruction means that ...... innovations destroy established companies or industries.

Vocabulary: Fiscal and monetary policyMK, p 11611C, 2A, 3B, 4E, 5D, 6G, 7FHW: p 116, 2 & 3Listening 1:Consumption and the business cyleAnswer the questions 1- 4Listening 2: Keynesianism1 - 1 downturn 2 manipulate 3 balances

4 deficits 5 booming 6 recession7 expenditure 8 harmful

HW: Reading 2 & Comprehension pp 117 - 118

Complete:business cycle/_____ cycleGDP ___________ as booms and recessions

succeed each othera boom – economy _______ until it works at full

________recession – demand _______ and the economy

begins to work ______ its potentialpeak– the highest point on t__ b_______ c____a serious, long-lasting recession

= a __________ or a _______it is followed by a downturn: ________it is followed by an upturn: __________

tradefluctuates

expands

declines capacity

belowhe usiness ycle

depression slumpa peak

a trough

Describing a graph? MK p 115

VERBS or NOUNS to describe trends or movementsGoing up or down a little

- to rise (v.) a rise (n.) - to fall (v.) a fall (n.)

Going up or down a lotto surge (v.) a surge (n.) – to plunge(v.) a

plunge (n.)

No changeto level off (v.) stabilisation (n.)

Change in directionto peak (v.) a peak (n.) to bottom out (v.) a trough (n)

INTRANSITIVE TRANSITIVE VERBS VERBS

RISEGROWJUMPRALLY

FALL DECLINEPLUMMETSLUMP

TO RAISE PRICESTO BOOST THE

ECONOMY

TO SLASH TAXESTO BRING DOWN

PRICES

INCREASEDECREASE

MARK 1 “go up”, 2 ”go down”, 3 “go up a lot” or 4 “ go down a lot”

As part of an overall boom, spending on advertising rocketed in the late 1990s and, in 2000, it soared by morethan 8% in America, which represents about half the world market. But then the following year it plunged by 8%. Now the industry is feeling positive again and advertising is expected to escalate by nearly 5% this year. But how is the money being spent? Thanks to the Internet, there was ajump in website advertising of nearly 40%. But is traditional TV advertising shrinking? America’s big TV networks used to reach 90% of households but then this figure plummeted to as low as 33%. Consequently, TV advertisingby some multinationals also slumped.

MARK 1 “go up”, 2 ”go down”, 3 “go up a lot” or 4 “ go down a lot”

As part of an overall boom, spending on advertising rocketed3 in the late 1990s and, in 2000, it soared3 by more than 8% in America, which represents about half the world market. But then the following year it plunged4 by 8%. Now the industry is feeling positive again and advertising is expected to escalate1 by nearly 5% this year. But how is the money being spent? Thanks to the Internet, there was a jump3 in website advertising of nearly 40%. But is traditional TV advertising shrinking2? America’s big TV networks used to reach 90% of households but then this figure plummeted4 to as low as 33%. Consequently, TV advertising by some multinationals also slumped4.HANDOUT: The business cycle

ADJECTIVES or ADVERBS used in describing trends or movements

A D + V E R B SDEGREE OF CHANGE

The oil prices rose sharply.

SPEED OF CHANGE

In November the oilprices started fallingabruptly.

A D J E C T I V ES+NOUNSDEGREE OF CHANGEThere was a sharpincrease in the price ofgold.

SPEED OF CHANGEThe stock markets saw

an abrupt decrease in the ratings.

Verbs adverbs Nouns (a/an) adjectivesto increaseto growto riseto improveto go up

dramaticallyconsiderablysharplysignificantlysubstantially moderatelyslightly

an increasea growtha risean improvementan upturn

dramaticconsiderablesharp significantsubstantial moderateslight

to decreaseto fallto dropto declineto go down

abruptly,suddenly,rapidly, quickly,steadily, slowlygradually…

a decreasea falla dropa declinea downturn

abupt,suddenrapid, quick,steady,slow,gradual

TO GO UP OR DOWN A LITTLE

grow, rise, increase – not followed by “up”fall, drop, decrease – not followed by “down”

MAKE ADVERBS.

rapidquickslightmoderatedramaticconsiderablesubstantialgradualsteady

rapidlyquicklyslightlymoderatelydramaticallyconsiderablySubstantiallygraduallysteadily

Since 1998, the use of broadcast TV has fallen sharply, going down from 950 to under 600 hours in just seven years. This figure levelled off slightly in 2002 with a slight decline of just 30 hours compared to a sharp fall of 70 hours the following year and reaching an all-time low of under 600 hours per year by 2004. At the beginning of 2005, the use of broadcast TV has abruptly risen, only to be followed by a gradual drop in the second quarter.

Trends:by Verbs+Adverbs & Nouns&Adjectives

Since 1998, the use of broadcast TV has fallen sharply, going down from 950 to under 600 hours in just seven years. This figure levelled off slightly in 2002 with a slight decline of just 30 hours compared to a sharp fall of 70 hours the following year and reaching an all-time low of under 600 hours per year by 2004. At the beginning of 2005, the use of broadcast TV has abruptly risen, only to be followed by a gradual drop in the second quarter. HANDOUT: File 2

Verbs+Adverbs & Nouns+AdjectivesDegree & speed of change

Describing movements and prepositions

to rise ______ 2 h ___ 5 hto increase _____ 35 %a decrease ____ 10 %an increase ____ 15%to decrease ____ 46%to fall _____ 20 % ____ 13 %to fall ____ $3 h ___ $2 hThe company expects a 5% increase ___ sales.Sales stood ___ $1 m ___ 1998.The sales figures peaked ___ $1,000.

Describing movements and prepositions

to rise from 2 h to 5 hto increase by 35 %a decrease of 10 %an increase of 15%to decrease by 46%to fall from 20 % to 13 %to fall from $3 h to $2 hThe company expects a 5% increase in sales.Sales stood at $1 m in 1998.The sales figures peaked at $1,000.