(1) The Business Cycle MK, U 23 RB ( 2) Graph description (using verbs to describe trends and movements) RB ( 3) Meetings, cont. (agenda, memo, minutes) RB

trɒf TROUGH /trɒf/

trɒf The Business Cycle The fluctuations in e a that an economy experiences o a period of time. A business cycle is basically defined in terms of periods of expansion or recession. ( PRONUNCIATION /trɒf/

trɒf The Business Cycle The fluctuations in economic activity that an economy experiences over a period of time. A business cycle is basically defined in terms of periods of expansion or recession. ( PRONUNCIATION /trɒf/

The Business Cycle → MK, p 114 Lead-in discussion Vocabulary 1

The Business Cycle → MK, p 114 Lead-in discussion Vocabulary 1 1 downturn 2 upturn 3 expectations 4 consumption 5 balance of payments 6 GDP 7 demand 8 supply 9 save

Viewing/listening Viewing/listening Make notes to capture the most important info: “ a backwards rollercoaster” 3 indicators of recession by NBER definition of recession 4 phases economic trends in recession V-shaped recession vs. U-shaped recession

NBER = 3 indicators of recession by NBER: – GDP = gross domestic product – employment – wholesale – retail trade definition of recession: –2 or more consequtive quarters of negative economic growth 4 phases: –Peak –Recession –Trough –Expansion (recovery) National Bureau of Economic Research

economic trends in recession: –C_ _ _ _mer spending slows –Inv_ _ _ _ries build up –Companies r_ _ _ _e output & layoff employees –Unemployment r_ _ _s economic trends during a recovery –Activity ac_ _ _ _ _ _ _es –Consumer spending i_ _ _ _ _ _s –New orders are placed –Companies increase output & a_ _ employees –Unemployment d_ _ _ _ _ _s

economic trends in recession: –Consumer spending slows –Inventories build up –Companies reduce output & layoff employees –Unemployment rises economic trends during a recovery –Activity accelerates –Consumer spending improves –New orders are placed –Companies increase output & add employees –Unemployment declines

Collocations: recession v. expansion economic activity slows down consumers spend less money businesses make fewer sales inventories build up companies earn less revenue fewer orders are placed businesses cut back on output unemployment rate goes up businesses reduce the number of people on payrolls eventually it reaches a trough economic activity picks up again sales improve excess inventories are used up new orders are placed production is ramped up again job opportunities improve unemployment rate comes down eventually it tops out

Collocations: recession or expansion? economic activity picks up again businesses make fewer sales excess inventories are used up companies earn less revenue new orders are placed production is ramped up again job opportunities improve businesses cut back on output unemployment rate goes up eventually* it reaches a trough. eventually it tops out consumers spend less money sales improve * at an unspecified later time, in the end

Collocations: recession or expansion? E: economic activity picks up again R: businesses make fewer sales E: excess inventories are used up R: companies earn less revenue E: new orders are placed E: production is ramped up again E: job opportunities improve R: businesses cut back on output R: unemployment rate goes up R: eventually* it reaches a trough. E: eventually it tops out R: consumers spend less money E: sales improve * at an unspecified later time, in the end

begins abruptly reaches a trough quickly recovers quickly slowdown lingers* takes a long time for activity to pick up again * to remain existent although often waning in strength, importance, or influence V-SHAPED OR U-SHAPED RECESSION? v U

READING and filling in gaps (MK, p. 114,115) 1.What happens to GDP in a business cycle? 2.What happens during an upturn? (What tends to rise?) 3.What is a boom? 4.What happens during a downturn? (What falls?) 5.What is the difference between a recession and a depression? (Synonyms?) 6.What is the most probable cause of the business cycle? 7.How do people behave in good times? And in bad times? 8.How is investment connected with demand? 9.What are the external causes of the business cycle? 10.What is creative destruction?

MK, p 114 Read and fill in the gaps: 1 GDP2 upturn3 downturn 4 consumption5 expectations 6 balance of payments7save 8 demand9 supply

PAIRWORK: Make a list of 5 words/expressions you have learnt or you consider important for the topic Compare lists Use each word / expression in a sentence HW: Comprehension, p 115

To do list for Tue,10 March: (1) MK, p 115: Comprehension (hand in) (2) Find a video on Creative destruction, me the link by 8 March (3) Practice rise vs. raise (cut, slash vs. decline, drop)

Business cycle: DESCRIBING GRAPHS  RB, p 27 TYPES & VERBS ? ? ? ? ?

RB, p 29, Task I Go upGo down rise growdecline boostslash jumpplummet rallyslump soarbring down rocketfall increaseplunge raisedecreasedrop Do tasks I - VII

Transitive & intransitive verbs: Rise vs. raise Charles is a baker who has his own business located in South San Francisco. He does his baking in the early hours of the morning. He ____ at 3:00 a.m. six days a week and goes to work. First, he makes the bread dough and sets it aside to give it time to ____. Then, he begins his long day. His parents ____ him and taught him to work hard. He bakes dozens of loaves of breads, cakes and rolls. The ovens ____ the room temperature, but he is used to working in a very warm kitchen. He has three helpers. With the increase in demand for his breads, he has had to ___ the number of employees who work for him. Sometimes, an employee asks him for a ____ in salary. He gives one when he can. Because his business is increasing so fast, It is easy for him ____ money from investors. He has to pay his suppliers that buy directly from farmers that ____ wheat used to make his flour. His name has been ______, in the world of successful baker-businessmen. raise.html

Meetings, cont. Handout (phrases) - do at home (1) substitute numbers by words (2) fill in the missing words (functions) Study pp 15-16: memo, agenda, action minutes A role play, RB p 14 I Make groups of four. Read the situation first and assign roles. Role-play the meeting following the prompts below. (have somebody keep the minutes) II Report the decision to the class. RB, pp 15-16: ACTION MINUTES Work together to produce the action minutes for the meeting above