1. downturn peakdownswing contraction troughupturn expansion recessionrecovery depressionslumpboom

2. economic ______ vs. economic ______ depression / slump recession downturn /downswing contraction trough boom recovery upturn expansion peak

3. economic decline vs. economic growth depression / slump recession downturn /downswing contraction trough → MK, p 114 Vocabulary 1 boom recovery upturn expansion peak

4. 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?

5. 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.

6. 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 downturn2 manipulate3 balances 4 deficits5 booming6 recession 7 expenditure8 harmful HW: Reading 2 & Comprehension pp 117 - 118

7. Complete: business cycle/_____ cycle GDP ___________ as booms and recessions succeed each other a boom – economy _______ until it works at full ________ recession – demand _______ and the economy begins to work ______ its potential peak– 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: __________ trade fluctuates expands declines capacity below he usiness ycle depressionslump a peak a trough

8. Describing a graph? MK p 115

9. 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)

10. INTRANSITIVE TRANSITIVE VERBS VERBS RISE GROW JUMP RALLY FALL DECLINE PLUMMET SLUMP TO RAISE PRICES TO BOOST THE ECONOMY TO SLASH TAXES TO BRING DOWN PRICES INCREASE DECREASE

11. 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.

12. 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

13. ADJECTIVES or ADVERBS used in describing trends or movements A D + V E R B S DEGREE OF CHANGE The oil prices rose sharply. SPEED OF CHANGE In November the oil prices started falling abruptly. A D J E C T I V ES+ NOUNS DEGREE OF CHANGE There was a sharp increase in the price of gold. SPEED OF CHANGE The stock markets saw an abrupt decrease in the ratings.

14. VerbsadverbsNouns (a/an) adjectives to increase to grow to rise to improve to go up dramatically considerably sharply significantly substantially moderately slightly an increase a growth a rise an improvement an upturn dramatic considerable sharp significant substantial moderate slight to decrease to fall to drop to decline to go down abruptly, suddenly, rapidly, quickly, steadily, slowly gradually… a decrease a fall a drop a decline a downturn abupt, sudden rapid, 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”

15. MAKE ADVERBS. rapid quick slight moderate dramatic considerable substantial gradual steady rapidly quickly slightly moderately dramatically considerably Substantially gradually steadily

16. 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

17. 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+Adjectives Degree & speed of change

18. 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.

19. 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.