The business cycle

Read p. 114-5 and answer the questions

1. 2. 3. 4.

5.
6. 7. 8. 9. 10.

What fluctuates during a business cycle? What tends to rise during an upturn? What happens during a downturn? What causes of business cycles are mentioned in the text? (2) What do people do when economic times are good? When does an upturn end? What do people tend to do then? What is investment linked to? When do people invest? How does a downturn end?

Define...
An upturn 2. A boom 3. A recession 4. a depression or slump. 5. a peak. 6. a trough. What is ... 1. a negative growth?
1.

Theories for the business cycle

A) INTERNAL OR _________ THEORIES
1.

2.

3.
4. 5. 6.

These theories hold that business cycles are caused by... A downturn begins when.... People spend, and borrow money when People tend to spend less when When interest rates rise... Companies only invest while ... These theories hold that business cycles are caused by... Schumpeter believes that Creative destruction means that...

B) EXTERNAL OR _________ THEORIES

1.

2.
3.

MK, p. 116, Vocab. 2/2: synonyms

Boost Depression Expand Output Decrease Excess Expenditure Recovery

Stimulate Slump Grow Production Reduce Surplus Spending Upturn

MK, p. 116, Vocab. 2/3: opposites

Boom Demand Exogenous Contract Peak Save

Depression Supply Endogenous Expand Trough Spend

Describing graphs

Diagram, line chart, flow chart, pie chart, bar chart

Name the following shapes:

1. 1.

Vertical axis (pl. axes) Horizontal axis Solid line Broken line Dotted line

2.

2.

3.

______________ -----------------------..............

3.

4. 5.

4. 5.

Writing tips for describing graphs

1.
2.

3.

4.

5.

6. 7.

Look at the graph and decide what is the topic and the time frame of the graph. What do the labels and the numbers represent? (a percentage? A price?) Describe the overall situation, find the most important trends. Do not describe every detail. Try not to repeat the same language and sentence structures. Stick to the facts, do not give opinions. Conclude by summarising what we learn from the chart.

Write an intro to this graph: 1. topic, 2. time frame, 3. overall situation

Language: Verbs

Decide if the following verbs are transative (followed by an object) or intransative (no object necessary). Put the following objects after the verb if you think it is necessary: prices, sales, spending, taxes. The verbs: Rise, boost, plunge, fall, decline, grow, spur, plummet, slash, jump, slump, rally, soar, raise, bring down

INTRANSITIVE VERBS (no object)

TRANSITIVE VERBS + a direct object

RISE GROW JUMP RALLY SOAR FALL DECLINE PLUMMET SLUMP PLUNGE

TO RAISE PRICES TO BOOST SALES TO SPUR SPENDING

INCREASE DECREASE

TO SLASH TAXES TO BRING DOWN PRICES

Rise, fall, raise, arise

1.
2. 3.

4.

5.

Give the past forms of these verbs and of the verb feel. Which verb means to happen, to occur or to come into existence? A cash-flow crisis has _________. Last year we ____ $2 m in capital. Retail prices ______ by 7% last year. The Prime Minister ______ sure that unemployment will decline in the next two years. The Fed will probably ____ interest rates by 0.5%.

6.

The problem ____ from the lack of quality control.

Rise, fall, raise, arise

1.
2. 3.

4.

5.

Give the past forms of these verbs and of the verb feel. Which verb means to happen, to occur or to come into existence? A cash-flow crisis has arisen. Last year we raised $2 m in capital. Retail prices rose / fell by 7% last year. The Prime Minister felt sure that unemployment will decline in the next two years. The Fed will probably raise interest rates by 0.5%.

6.

The problem arose from the lack of quality control.

Nouns can also be used to describe trends. What is the noun version of the verb?

Verbs To increase To decrease To decline To fall To rise To drop To surge To plunge To slump To improve To jump

Nouns An increase A decrease A decline A fall A rise A drop A surge, an upsurge A plunge A slump An improvement A jump

Adjectives and adverbs help in describing the speed or the degree of change
AD+VERBS

A D J E C T I V ES+NOUNS

DEGREE OF CHANGE

DEGREE OF CHANGE

The oil prices rose sharply.

SPEED OF CHANGE

There was a sharp increase in the price of gold.

In November the oil prices started falling abruptly.

SPEED OF CHANGE

The stock markets saw an abrupt decrease in the ratings.

Adjectives

Degree or speed? Make two groups.

Gradual, dramatic, abrupt, considerable, quick, significant, sharp, rapid, substantial, sudden, steady, slow, moderate, slight

Adjectives
Degree
dramatic considerable significant sharp substantial moderate slight

Speed
abrupt sudden rapid quick steady slow gradual

Make adverbs from adjectives

Adjectives Adverbs

significant sharp substantial moderate gradual dramatic considerable steady

significantly sharply substantially moderately gradually dramatically considerably steadily

ADJECTIVE OR ADVERB?

There was a CONSIDERABLY / CONSIDERABLE fall. It fell SLIGHT / SLIGHTLY. There was a SLIGHT / SLIGHTLY upturn. The government decreased taxes MODERATE/ MODERATELY. They reported a DRAMATICALLY / DRAMATIC downturn.

Fill in the prepositions

to rise _____ $60956 _____ $120956

an increase ___ $60000 the price rose __ $60000

to fall _____ 22004 _____ 11002 to increase __ 77% to decrease __ 43% sales stood __ $1m

to fall ____ 50%

an increase ___ 77% a decline ___ 43% Prices peaked __ $78 ___ 2011.

FILL IN THE PREPOSITIONS

to rise from $60956 to $120956

an increase of $60000 the price rose by $60000

to fall from 22004 to 11002 to increase by 77% to decrease by 43% sales stood at $1m

to fall by 50%

an increase of 77% a decline of 43% Prices peaked at $78 in 2011.

PREPOSITIONS: explain the difference Draw a chart to represent both.

Sales grew by $5 m.

Sales grew from 10m to 15 m.

Sales grew to $5 m.

Sales are now at 5 m.

Prepositions

N + of + #(change)

A growth of 78%
Sales grew by 78% Sales grew to $15m

V + by + #(change)

V + to + #(destination)

Current position on a graph/standing: at

Sales are currently standing at 15m. Sales peaked at 25m. Sales bottomed out at 4m.

HW: Describe this graph in writing