Task 2. Now read the text again and answer the questions.

1. Which countries were affected by the Great Depression?

A. only America

B. just America and Europe

C. the whole world

2. Which of the following is interested in foreign economies?

A. microeconomics

B. macroeconomics

C. both microeconomics and macroeconomics

3. The three different mechanisms which governments use are …

A. all concerned with how much money people have to spend.

B. aimed at improving education and training.

C. all different ways of managing an economy.

4. Which mechanisms involve changing interest rates?

A. fiscal policy

B. monetary policy

C. administrative approach

5. Which mechanisms might involve creating job training schemes for school leavers?

A. fiscal policy

B. monetary policy

C. administrative approach

6. What do governments want to achieve with their macroeconomic policies?

A. to predict what will happen in the economy

B. to create steady economic growth

C. to combine different paths for economic growth

Task 3. Match the words and phrases with the definitions.

devastating collapse something that happens

fiscal policy a method or tool for doing something

domestic control of spending through taxation

steady growth money you gave to spend after paying tax

monetary policy a serious slowing down of the economy

recession at a slow, unchanging rate

mechanism move around

disposable income control of the cost of borrowing and movement of money in economy

interest the members of the population able to work

circulate something you know will happen

depression complete destruction

predictable the cost of borrowing money

event not foreign

workforce a very bad period for the economy

Task 4. Complete the crossword. Some letters have been given to help you.

ACROSS	DOWN
1. This kind of economy is both planned and free market.	2. This kind of economics looks at the whole picture.
3. The first kind of economy that existed	7. In this economy, the government decides everything.
4. The point where demand and supply meet.	8. This falls as prices rise.
5. This kind of economics simply describes the economy.	9. In this kind of economy, price is set by supply and demand.
6. A measure of how much demand influences price.	12. Something that can be measured, like money spent or babies born.
10.This kind of economics makes recommendations.
11.This kind of economics looks at the details of the economy.

Task 5. Find six pairs of opposites.

■ benefits ■ consumer ■ drawbacks

■drought ■ flood ■ manufacturer

■private sector ■ save ■ shortage

■spend ■ state sector ■ surplus

Task 6. Now write five example sentences using as many words as possible from this exercise.