Inflation

INFLATION

UNIT 5

Grammar: Modal Verbs: expressing ability

Assignment 1. Read and learn the following words and phrases.

inflation -інфляція; mild ~ помірна інфляція; expectational ~ очікувана інфляція;

average – середній;

price level – рівень цін;

over time – за певний час;

deflation – дефляція;

to outweigh – переважувати;

extent – розмір, величина, ступінь, міра;

severity – глибина, гострота;

hyperinflation – гіперінфляція;

to entail – тягнути (за собою); викликати;

rate – ставка, розмір; ~ of inflation – ставка інфляції;

annual – щорічний;

stability – стабільність; stable – стабільний; to stabilize – стабілізувати;

to lead – вести (до); призводити (до);

to hurt – вражати;

cause – причина;

to push – штовхати (від себе);

cost-push inflation – інфляція, спричинена зростанням виробничих витрат;

to necessitate – вимагати; робити необхідним; викликати;

to pull – тягти (на себе);

demand-pull inflation – інфляція, спричинена зростанням попиту;

means (of) – засіб, спосіб;

to measure – вимірювати; measure – міра; засіб;

indicator – показник; inflation ~ – показник інфляції;

consumer price index (CPI) – індекс споживчих цін;

producer price index (PPI) – індекс цін виробника;

wholesale price index – індекс гуртових цін;

market basket (of goods and services) – ринковий кошик (товарів та послуг);

periodical – періодичне видання;

to follow – слідкувати; цікавитись; ~ closely – уважно слідкувати; глибоко цікавитись;

wage indexing – індексація заробітної плати;

Assignment 2. Read and translate the text.

I nflation is generally defined as an increase in the average price level of goods and services over time. The average price level may fall as well as rise. A decrease in average prices – a deflation – occurs when price decreases on some goods and services outweigh price increases on all others.

Inflation varies considerably in its extent and severity, from mild inflation of a few per cent each year to hyperinflation, which entails enormously high rates of inflation. Inflation rate is the annual rate of increase in the average price level. The absence of significant changes in the average price level is referred to as price stability. It is officially defined as a rate of inflation of less than 3 per cent.

Inflation leads to the redistribution of income and wealth in the society, often hurting people with little economic power (e.g. pensioners). It affects the country’s balance of payments because exports become relatively more expensive and therefore less competitive, and imports become relatively cheaper.

There are many causes of inflation, according to economists. Two of the most important are:

· Cost-push inflation. Cost-push inflation refers to the fact that firms raise prices when the costs of various factors of production go up. For example, increase in the cost of labour, machinery, raw materials, fuels and credit necessitate higher prices.

· Demand-pull inflation. Demand-pull inflation refers to a condition in which buyers want to buy more goods and services than are available at the time. This causes prices to rise as a means of limiting demand to the available supply.

Two of the most common measures of inflation (inflation indicators) are the consumer price index (the CPI) and the producer price index ( the PPI), also known as the wholesale price index. As the names suggest, the CPI measures the price of an average market basket of goods and services for an average family (household) over time, while the PPI measures changes in the prices businesses pay for goods and services over time.

Both inflation indicators are calculated monthly and published in business periodicals. The CPI is the most closely followed, because many companies and government programs base their salary and payment increases on it. Governments use wage indexing to keep real wages at a high and inflationary level. The PPI usually indicates future consumer prices and is therefore a barometer of future inflation (expectational inflation).

Assignment 3. Answer the following questions.

1. What is defined as inflation?

2. What is defined as deflation?

3. How does inflation vary?

4. What does inflation rate indicate?

5. What are the two most important types of inflation?

6. How does inflation affect the society?/ the economy?

7. In what way do the production costs cause inflation?

8. What is one of the means of limiting excess demand?

9. What do the abbreviations the CPI and the PPI stand for?

10. What do the CPI and the PPI measure?

11. Why are both inflation indicators closely followed?

12. What type of inflation does the PPI predict?

Assignment 4. Translate into English.

Середній рівень цін; траплятися; значно змінюватись в обсязі та глибині; надмірно високі ставки інфляції; офіційно визначати; перерозподіл прибутку і багатства в суспільстві; платіжний баланс країни; як засіб обмеження попиту; як передбачає назва; показники обчислюються щомісяця; визначати майбутні споживчі ціни.

Assignment 5. Translate into Ukrainian.

As well as; price decreases outweigh price increases; absence of significant changes; people with little economic power; less competitive; according to economists; to be available at the time; the most common measures of inflation; average family(household); business periodicals; salary and payment increases.

Assignment 6. Match and learn the synonyms.

A: to cause, to occur, to go down, to go up, to measure, to necessitate, a means (of), enormously;

B: to require, to fall, to rise, to estimate, to happen, to entail, excessively, measure.

Assignment 7. Use synonyms to paraphrase the following sentences.

1. Hyperinflation causes excessively high rates of inflation. 2. Increase in the cost of various factors of production requires higher prices. 3. The average price level may go up as well as down. 4. Economists estimate inflation applying the CPI and the PPI. 5. Increase in prices is used as a measure of limiting excess demand to available supply.

Assignment 8. Find in the list of words below pairs with opposite meaning.

Producer, fall, export, decrease, presence, more, expensive, consumer, less, cheap, absence, rise, increase, import.

Assignment 9. Match the term with its definition. Learn the definitions. Use the terms in the proper contexts below.

1. Inflation	a) the combination of a low rate of economic growth, mass unemployment (stagnation) and double digit inflation.
2. Deflation	b) a percentage change in the price level.
3. Stagflation	c) an increase in the overall price level.
4. Rate of inflation	d) a decrease in the overall price level.

1. An enormous increase in oil prices in the early 1970s caused a deep … with rising unemployment and balance-of-payments problems in many western economies. We may say that at that time western economies entered the period of …. 2. The decrease of the … from 12.4 per cent in 1980 to 3.8 per cent in 1983 was achieved at the cost of a low rate of economic growth in the whole world. 3. … occurs rater rarely while … is widespread.

Assignment 10. Make up question beginning with the words in brackets.

1. Inflation often hurts people with little economic power (Whom?) 2. Inflation is generally defined as an increase in the average price level of goods and services over time (How?) 3. Two of the most common measures of inflation are the CPI and the PPI (What?) 4. Inflation varies considerably in its extent and severity (How?) 5. Inflation affects the country’s balance of payments because exports become relatively more expensive and imports become relatively cheaper (Why?)

Assignment 11. Reconstruct the word partnerships (n+n phrases).

1) indicators that measure inflation – inflation indicators;

2) income of the average household –

3) periodicals that concern business –

4) index that estimates the increase in the wholesale prices –

5) index that is used to measure the growth in consumer prices –

6) index that shows the rise in producer prices –

7) inflation that is pushed by increased costs of production –

8) inflation that is pulled by excess demand –

Assignment 12. Add prefix re- to the following verbs and translate them. Which of them can be made into nouns? Translate the sentences below.

To write – to rewrite, to read, to build, to construct, to calculate, to distribute, to do.

1. Інфляційну ставку слід обчислити заново. 2. Перепишіть це завдання уважно і виконайте його знову. 3. Місто було відбудовано наприкінці 60х років. 4. Він повинен перечитати весь розділ, щоб відповісти на це запитання. 5. Дивіденди будуть перерозподілені у відповідності до частки інвестицій. 6. Наше завдання – відновити виробничу лінію.

Assignment 13. Reconstruct the word order in the following sentences.

1. balance, affects, Inflation, country’s, the, payments, of.

2. monthly, the, are, CPI, Both, and, calculated, the, PPI.

3. base, government, on, and, salary, increase, their, the, payment, programmes, Many, CPI.

4. of, is, future, The, inflation, a, barometer, PPI.

5. officially, of, 3 per cent, is, Price, defined, a, rate, inflation, of, less, stability, as, than.

Assignment 14. The following verbs can be used to describe upward (↑) and downward (↓) movements in price, quantity and amount.

Intransitive verbs (do not have an object)	Transitive verbs (have an object)
↑ increase, rise, go up ↓ decrease, fall, drop, go down, decline	↑increase, raise ↓decrease, reduce, drop

e.g. The population of the world is increasing.

The government has increased import taxes.

The corresponding nouns can also be used (mind the stress):

↑ an increase, a rise, a raise (AE=increase in salary) ↓ a decrease, a trough, a drop, a decline, a reduction

Дата добавления: 2014-11-29