Download go down

downturn
peak
downswing
contraction
trough
expansion
recession
depression
slump
upturn
recovery
boom
economic ______ vs. economic ______
 depression / slump
 recession
 downturn /downswing
 contraction
 trough
 boom
 recovery
 upturn
 expansion
 peak
economic decline vs. economic growth
 depression / slump
 recession
 downturn /downswing
 contraction
 trough
→ MK, p 114
Vocabulary 1
 boom
 recovery
 upturn
 expansion
 peak
Causes of the business cycle
 Internal (endogenous) theories:
beliefs about the future
interest 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?
Comprehension
 A 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 policy
 MK, p 116
1
1C, 2A, 3B, 4E, 5D, 6G, 7F
HW: p 116, 2 & 3
Listening 1:
Consumption and the business cyle
Answer the questions 1- 4
Listening 2: Keynesianism
1 - 1 downturn 2 manipulate
3 balances
4 deficits 5 booming 6 recession
7 expenditure 8 harmful
HW: Reading 2 & Comprehension pp 117 - 118
Complete:
trade cycle
 business cycle/_____
fluctuates as booms and recessions
 GDP ___________
succeed each other
expands until it works at full
 a boom – economy _______
capacity
________
declines and the economy
 recession – demand _______
below its potential
begins to work ______
he b_______
usiness c____
ycle
 peak– the highest point on t__
 a serious, long-lasting recession
depression or a _______
slump
= a __________
a peak
 it is followed by a downturn: ________
a trough
 it is followed by an upturn: __________
Describing a graph? MK p 115
VERBS or NOUNS to describe trends or
movements
Going up or down a little
- to rise (v.) a rise (n.) - to fall (v.) a fall (n.)
Going up or down a lot
to surge (v.) a surge (n.) – to plunge(v.) a
plunge (n.)
No change
to level off (v.) stabilisation (n.)
Change in direction
to peak (v.) a peak (n.)
to bottom out (v.) a trough (n)
INTRANSITIVE
VERBS
RISE
GROW
JUMP
RALLY
FALL
DECLINE
PLUMMET
SLUMP
TRANSITIVE
VERBS
 TO RAISE PRICES
 TO BOOST THE
ECONOMY
INCREASE
DECREASE
 TO SLASH TAXES
 TO BRING DOWN
PRICES
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 more
than 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 a
jump 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 advertising
by 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
AD+VERBS
 DEGREE OF CHANGE
A D J E C T I V ES+NOUNS
 DEGREE OF CHANGE
The oil prices rose
sharply.
There was a sharp
increase in the price of
gold.
SPEED OF CHANGE
 SPEED OF CHANGE
In November the oil
prices started falling
abruptly.
The stock markets saw
an abrupt decrease
in the ratings.
TO GO UP OR DOWN A LITTLE
Verbs
adverbs
Nouns (a/an)
adjectives
to increase
to grow
to rise
to improve
to go up
dramatically
considerably
sharply
significantly
substantially
moderately
slightly
abruptly,
suddenly,
rapidly,
quickly,
steadily,
slowly
gradually…
an increase
a growth
a rise
an improvement
an upturn
dramatic
considerable
sharp
significant
substantial
moderate
slight
abupt,
sudden
rapid, quick,
steady,
slow,
gradual
to decrease
to fall
to drop
to decline
to go down
a decrease
a fall
a drop
a decline
a downturn
grow, rise, increase – not followed by “up”
fall, drop, decrease – not followed by “down”
MAKE ADVERBS.
 rapid
 quick
 slight
 moderate
 dramatic
 considerable
 substantial
 gradual
 steady
 rapidly
 quickly
 slightly
 moderately
 dramatically
 considerably
 Substantially
 gradually
 steadily
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.
Verbs+Adverbs & Nouns+Adjectives
Degree & speed of change
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
Describing movements and prepositions
 to rise ______ 2 h ___ 5 h
 to increase _____ 35 %
 a decrease ____ 10 %
 an increase ____ 15%
 to decrease ____ 46%
 to fall _____ 20 % ____ 13 %
 to fall ____ $3 h ___ $2 h
 The 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 h
 to 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 h
 The company expects a 5% increase in sales.
 Sales stood at $1 m in 1998.
 The sales figures peaked at $1,000.