4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing i, hat they spend mare businesses invest OH 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the amount of mxney in circulation, 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are con 1 tis posible for government policy {A ta seduce unemployment without affecting prices. B to reduce uneiployment temporarily atthe cost of inereased inflation, to seduce unemployment permanently atthe cost of higher prices 2 When 1X governments can choose t ignore this ation increases in industrialized countries 3 all governments simultaneously have to raise interest rates. one country will ase interest rates and others will soon be obliged t follow: 3 The governments in most industrialized countries A are much more intrested in price stability than in the prablem of unemployment, 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, oon the other high inflation an lose unemployment. 4 ‘The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality ofthe work force C by taking into account the socal costs of unemployment hAiicinece cycle | | {4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing it, 0 that they spend mong an businesses invest more 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are correct? | yi | | { 1 tis posible for government policy {A ta seduce unemployment without affecting prices. B to reduce uneiployment temporarily atthe cost of inereased inflation, to seduce unemployment permanently atthe cost of higher prices 2 When 1X governments can choose t ignore this 1 all governments simultancously have to rave interest rates, one country will ase interest rates and others will soon be obliged t follow: ation increases in industrialized countries 3 The governments in most industrialized countries A are much more interested in price stability than inthe problem of ‘unemployment 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, oon the other high inflation an lose unemployment. 4 ‘The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality of the work force C by taking into account the socal costs of unemployment ib Reading4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing i, hat they spend mare businesses invest OH 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are con | | { 1 tis posible for government policy {A ta seduce unemployment without affecting prices. B to reduce uneiployment temporarily atthe cost of inereased inflation, to seduce unemployment permanently atthe cost of higher prices 2 When 1X governments can choose t ignore this 1 all governments simultancously have to rave interest rates, one country will ase interest rates and others will soon be obliged t follow: ation increases in industrialized countries 3 The governments in most industrialized countries A are much more interested in price stability than inthe problem of ‘unemployment 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, oon the other high inflation an lose unemployment. 4 ‘The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality ofthe work force C by taking into account the socal costs of unemployment ic Comprehension4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing i, hat they spend mare businesses invest OH 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the amount of mxney in circulation, 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are con 1 tis posible for government policy {A ta seduce unemployment without affecting prices. B to reduce uneiployment temporarily atthe cost of inereased inflation, to seduce unemployment permanently atthe cost of higher prices 2 When 1X governments can choose t ignore this 1 all governments simultancously have to rave interest rates, one country will ase interest rates and others will soon be obliged t follow: ation increases in industrialized countries 3 The governments in most industrialized countries A are much more intrested in price stability than in the prablem of unemployment, 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, oon the other high inflation an lose unemployment. 4 ‘The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality ofthe work force C by taking into account the socal costs of unemployment 2 Economic theory and the business cycle 2a Listening 1) You will hear Kate Barker an economist talking about the causes of the business yee, Listen tothe frst part of the interview, and answer the questions below. ee ey ee ee ey a an | | {4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing it, 0 that they spend mong an businesses invest more 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the amount of mxney in circulation, 2b Listening > Listen tothe second part ofthe interview: Aeconing to what Kate Barker ays, which ofthese aernaiveanswersare correct? 116i possle for government palicy A toseduce unemployment without afeting pris B te rede uneiployiment temporary tthe cost of increased inflation, toreduce unemployment permanently atthe cost of higher pics 2 When 1 government con choose tn ignore this B allgovernments imlkanously have to rise fees sates. one country wil ase interest rates and others wil con be obliged o fallow ation increases in industrialized countries 3 The governments in most industrialized countries A are much more interested in price stability than inthe problem of ‘unemployment 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, oon the other high inflation an lose unemployment. 4 ‘The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality of the work force C by taking into account the socal costs of unemployment rrices to the system, there has to be perfect | yi | | { | | |4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing i, hat they spend mare businesses invest OH 6 Th goa of Reyncsiansn so eliminate recess 7 Moncirss sneer econoricachantages nor disadvan in creasing the 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are con 4 | i i i 1 tis posible for government policy {A ta seduce unemployment without affecting prices. B to reduce uneiployment temporarily atthe cost of inereased inflation, to seduce unemployment permanently atthe cost of higher prices When 1X governments can choose t ignore this 1 all governments simultancously have to rave interest rates, one country will ase interest rates and others will soon be obliged t follow: 3 The governments in most industrialized countries A are much more intrested in price stability than in the prablem of unemployment, 1 believe that continuously low inflation will ako help to keep unemployment Tow. Bas hg cans te aver grand Anton nd high unemployment, oon the other high inflation an lose | Templo | 4 ‘The caves way o achiwe low nation is | A debra ene ome rou use | 1 toe alla courrys resort G tokeepimeret atest | 1 byallig ination to ners. | by incmeag product cpactror impinge ilay atthe workfowe. —<| G ting ene teal eae of ep | | | \ Keynesianism and monetarism 1 The business cycle rhe 7, foes 14. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing i, hat they spend mare businesses invest OH 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the amount of mxney in circulation, 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are correct? y {A ta seduce unemployment without affecting prices. B to reduce uneinployent temporarily at the cost of i 113s posible for governenent po ase inflation, to seduce unemployment permanently atthe cost of higher prices When inflation nensases in industrialized countries 1X governments can choose t ignore this Ball governmeats simultancously have t ra one country will ase interest rates and others will soon be obliged t follow: The governments in most industrialized countries A are much more interested in price stability than inthe problem of ‘unemployment 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, of on the other, high inlaio unemployment. ind lowe The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality ofthe work force C by taking into account the socal costs of unemployment 2 Match up the words below into pairs that mean the same, i | | {4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing it, 0 that they spend mong an businesses invest more 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the amount of mxney in circulation, 2b Listening hi" Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are correct? y {A ta seduce unemployment without affecting prices. B to reduce uneinployent temporarily at the cost of i 113s posible for governenent po ase inflation, to seduce unemployment permanently atthe cost of higher prices 2 When inflaton ineessesin industrialized countries 1X governments can choose t ignore this Ball governmeats simultancously have t ra one country will ase interest rates and others will soon be obliged t follow: 13 The governments in most industrialized countries ‘A ate much more ineresedin price stability than in the problem of ‘unemployment 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, of on the other, high inlaio unemployment. ind lowe 4 Theses way o achiewe low inflation is A. deliberately to leave some resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality of the work force C by taking into account the socal costs of unemployment the busiress cycle. Duting an inflationary (8) 7 governments could decrease ther spending or increase taxation. During @ veession, on the contrary they ould inercase ther expenditure or decrease taation, oF increase te (5) ‘and reduce interest rates, s0 9s to stimulate the econamy and increase oulput investment consumption and employrent. Keyes ako argued that even a small amount ‘of ditional government spending or an increase in private investment causes to expand by an amourt eater than tse cause ofthe mulifer ‘Giccceeemeeeeenaien atk ot4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing i, hat they spend mare businesses invest OH 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are con | | { 1 tis posible for government policy {A ta seduce unemployment without affecting prices. B to reduce uneiployment temporarily atthe cost of inereased inflation, to seduce unemployment permanently atthe cost of higher prices 2 When 1X governments can choose t ignore this 1 all governments simultancously have to rave interest rates, one country will ase interest rates and others will soon be obliged t follow: ation increases in industrialized countries 3 The governments in most industrialized countries A are much more interested in price stability than inthe problem of ‘unemployment 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, oon the other high inflation an lose unemployment. 4 ‘The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality ofthe work force C by taking into account the socal costs of unemployment Id Comprehension4. Monctarsts say that the only result of increasing the money supply ist raise ries, 5. Keynesians hoiewe that goxerament can increase the money supply without people noticing i, hat they spend mare businesses invest OH 6 Th goa of Reyncsiansn so eliminate recess 7. Monctarists ee neither economic advantages nur disndsontages in insteasing the amount of mxney in circulation, 2b Listening > Listen ta the second part ofthe interview: Acconding to what Kate Barker says, ‘which ofthese alternative answers are correct? y {A ta seduce unemployment without affecting prices. B to reduce uneinployent temporarily at the cost of i 113s posible for governenent po ase inflation, to seduce unemployment permanently atthe cost of higher prices When inflation nensases in industrialized countries 1X governments can choose t ignore this Ball governmeats simultancously have t ra one country will ase interest rates and others will soon be obliged t follow: The governments in most industrialized countries A are much more interested in price stability than inthe problem of ‘unemployment 1 believe that continuously low inflation will ako help to keep unemployment Tow. believe that its necessary to choose between, on the one hand, low inflation nd high unemployment, of on the other, high inlaio unemployment. ind lowe The easiest way to achieve low inflaton is A deliberately to leave ome resources unused 1 tose alla comntey’s resources efficiently oheep interest rates high. 5 In the long term, countries can best increase thei rate of employment A by allowing inflation to increase. B by increasing productive capacity oF improving the quality ofthe work force C by taking into account the socal costs of unemployment i | | {