Transcript The Business Cycle

(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
PRONUNCIATION
/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.
(www.investopedia.com)
trɒf
PRONUNCIATION
/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.
(www.investopedia.com)
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
http://www.youtube.com/watch?v=EMHkiKxtlvw
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 = National Bureau of Economic Research
• 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)
• 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
V-SHAPED OR U-SHAPED
RECESSION?
• begins abruptly
• reaches a trough
quickly
• recovers quickly
v
• slowdown lingers*
• takes a long time for
activity to pick up
again
* to remain existent
although often waning in
strength, importance, or
influence
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 GDP
2 upturn
3 downturn
4 consumption
5 expectations
6 balance of payments
7save
8 demand
9 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,
e-mail me the link by 8 March
(3) Practice rise vs. raise (cut, slash vs. decline, drop)
http://www.grammar-quizzes.com/rise-raise.html
Business cycle: DESCRIBING GRAPHS
?
?
?
 RB, p 27 TYPES & VERBS
?
?
RB, p 29, Task I
Go up
rise grow
boost
jump
rally
soar
rocket
increase
raise
Do tasks I - VII
Go down
decline
slash
plummet
slump
bring down
fall
plunge
decrease
drop
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. http://www.grammar-quizzes.com/riseraise.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