1. Read the text and answer the following questions
1. What is inflation? How does it influence ordinary people?
2. Why are prices different in various shops?
3. What inflation's effects on an economy can you name?
4. When has the connection between inflation and unemployment been drawn?
5. What does low inflation reduce?
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.
Inflation's effects on an economy are various and can be simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation may discourage investment and savings, and high inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future. Positive effects include ensuring central banks can adjust nominal interest rates (intended to mitigate recessions), and encouraging investment in non-monetary capital projects.
Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities, as well as to growth in the money supply. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.
Today, most mainstream economists favor a low steady rate of inflation. Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduce the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control the size of the money supply through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.
A connection between inflation and unemployment has been drawn since the emergence of large scale unemployment in the 19th century, and connections continue to be drawn today. In Marxian economics, the unemployed serve as a reserve army of labour, which restrain wage inflation.
2. Match the words and their definitions
| 1. demand | a. a period or process in which business activity is reduced and conditions become worse |
| 2. downturn | b. the people looking for work and the jobs that are available at that time |
| 3. labour market | c. the need or desire that people have for particular goods and services |
| 4. consensus | d. the amount of money you have to pay for something |
| 5. price | e. an opinion that everyone in a group agrees with or accepts |
3. Translate the following words and word combinations into English
1. покупательская способность 6. товары и услуги
2. ликвидность 7. уровень цен
3. темпы инфляции 8. инвестиции и свободный капитал
4. дефицит товаров 9. спад деловой активности
5. индекс потребительских цен 10. гиперинфляция
4. Translate the following words and word combinations into Russian
1. mainstream economists 6. goods and services
2. money supply 7. labour market
3. capital projects 8. scarcity
4. wage inflation 9. percentage
5. banking reserve requirements 10. fluctuations in real demand
5. Translate the following sentences in the Passive voice, using modal verbs
1. This task can be done in time.
2. The situation must be changed.
3. The decision must be made in proper way.
4. This agreement can be achieved.
5. This can be done without much attention to the constituents of the aggregates.
6. Everything must be prepared before the arrival of the delegation.
7. Should this work be done on time?
8. Can this work be done on time?
9. This decision may not be made in proper way.
10. I suggest the problem can be solved with paying attention to my advice.
11. We must solve this problem as soon as possible.
6. Choose the right variant
1. ……….. is a rise in the general level of prices of goods and services.
a) wage inflation b) recession c) inflation
2. High rates of inflation are caused by an excessive growth of the …………
a) labour market b) money supply c) scarcity
3. The task of keeping the rate of inflation low and stable is usually given to …………..
a) monetary policy b) mainstream economists c) monetary authorities
4. Low or moderate inflation may be attributed to fluctuations in for goods and services.
a) real demand b) wage inflation c) capital projects
5. Monetary authorities are ………..
a) business owners b) mainstream economists c) central banks
7. Writing a business letter
1) You are working at a big company as a Personal Assistant to Managing Director. In a month two representatives of your company will arrive in Vermont, USA and plan to be there for a week. Using examples given below try to write:
a) your own letter of inquiry to the best hotel in the city;
b) book seats on a plane.
Example 1:
|
15 Maple Street, Montpelier, Vermont, USA. 6th May, 2000 The Manager, Park Hotel, 26,… Str., Brighton, England.
Dear Sir: The name of your hotel has been given to me by the Hotel Association, and I shall be very much obliged if you let me know whether you have the following accommodation awailable for 3 weeks, from 15th July: One double room, if possible with private bathroom, and one single room. Thank you in advance for your reply. Yours faithfully, W.D.Throp |
Example 2:
|
Win Mouk Co., 302 Barr Street Rangoon, Burma.
7th July, 2000 Scandinavian Airline System 12, Chelsey Street, London, W.I., England. Dear Sirs: Our Technical Director, Mr.Thuong, will be arriving in London next week and will then go on to Sweden and Finland. We shall therefore be obliged if you book a seat for him on a plane leaving Britain for Stockholm on or about the 21st. We thank you in advance for your kind attention to this matter. Yours faithfully, Win Kuu (Secretary) |
2) You work at a big chemical plant as a Product Manager. Inform the well-known company-producer of chemical equipment that you would like to receive their latest catalogue. Use the words and word combinations provided below.
We are the leading manufacturers for this article………
We should be much obliged if ………
to consider our request………
to contact………
in this context………
Yours sincerely
We heard that your company is a reliable partner………
3) You work at a big bank as a Computer Specialist. Let the company supplier of the computers know that their terms of payment and dlivery suit you, but you cannot place an order with them as their prices are too high. Use the following words and word combinations
Company: Apple Computers, Inc., 32 5th Avenue, New York, USA.
Further to our discussion………
We wish to inform you ………
We highly appreciate………
full contact value………
to make a decision………
unfortunately………
competitive prices………
terms of delivery………
to reduce the prices………
Yours sincerely
4) You work at a food company as a Sales Manager. Inform your partners that the prices went up and you developed the new items which would be presented at the International Autumn Fair, November 2 – 10, 2004. Use the words and combinations given below
We have to inform you ………
to revise export prices………
to make necessary………
increased cost of the production………
as a result……… to enclose a copy of our price-list………
to draw smb’s attention to the new items………
to exhibit at the fair………
We thank you for your support in the past………
to hope to be of service to smb……….
Yours faithfuly
8. Make up your own CV using the following structure
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Peter Townsled 35 Green Road Spokane, WA 87954 Phone (503) 456 - 6781 Fax (503) 456 - 6782 E-mail petert@net.com
Personal Information Marital status: Married Nationality: US
Work experience
1998 - Present / Jackson Shoes Inc. / Spokane, WA Manager Responsibilities: - Provide helpful service to customers concerning shoe choices - Design and implement computer based tools using Microsoft Access and Excel for staff - Monthly bookkeeping - Suggest changes in product offerings on a quarterly basis based on detailed analysis of sales patterns - Provide in-house training for new employees as needed
1995 - 1998 / Smith Office Supplies / Yakima, WA Assistant Manager Responsibilities: - Managed warehouse operations - Programmed Excel spreadsheet implemented to control sales strengths and weaknesses on quarterly basis - Interviewed new applicants for open positions - Travelled locally offering on-site visits to regular customers - Supervised bookkeeping staff
Education 1991 - 1995 / Seattle University / Seattle, WA Bachelor of Business Administration Four year business administration course focusing and retail work environments
Additional Skills Advanced level skills in Microsoft Office Suite, basic HTML programming, spoken and written proficiency in French
REFERENCES Available upon request |