Tham khảo tài liệu 'english for agricultural economics - part 2', ngoại ngữ, anh văn thương mại phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 9 UNIT 2 THE BUSINESS CYCLE Extracted from English in Economics and Business Ha Noi Economics University NXBGD In groups discuss what you know about the business cycle. Read the following text Income growth fluctuates up and down over time even when there is a generally rising trend in output. For example in Vietnam national income grew at an average annual rate of per year between 1986 and 1990. But rates varied significantly from one year to the next. In 1986 income grew much more than average growth rate from 1986-1990. In 1990 it only grew which was less than the average. These year-to-year or short-term movements in output are called the business cycle. The business cycle is the somewhat regular pattern of expansion recovery and contraction recession in real output of the economy that happens over the long term. The turning points of economic activity during the business cycle are the peak and the trough. The peak occurs when the growth rate is at the highest point and unemployment is low. The trough occurs when growth rate is at the lowest point and when unemployment is high. The business cycle has two phases defined by the peak and the trough. The recession or contraction is the period from the peak in cyclical activity to the trough or bottom. The recovery or expansion is the move up to the next peak. Business cycle are irregular both in the period of time they last and in the magnitude size of the cycle. Macroeconomic policies try to stable the economy and reduce the size of the fluctuations from the business cycle. 10 Comprehension questions 1. Answer the following questions 1. What was the annual rate of national income growth in Vietnam between 1986 and 1990 2. Was this rate the same every year 3. What are short-term movements in output called 4. What is the business cycle 5. What does growth usually refer to in economics 6. What are the two turning points in the business cycle called 7. What are the two phases defined by 8. What are the two
