VII. Fill in the gaps

interaction; adjustments; market economy; government regulations; employment; cost conditions; considered; skills and training; tend; exceeds; available; result; insufficient; increase; to purchase; raw materials; decline; forced; frictional unemployment; dissatisfaction; labour force

Normal 1) ____ to changing demand and supply conditions for different products and services in а 2) _______ result in the loss of jobs for some people. Other workers quit their jobs because of 3) _____ or for other personal reasons. In а healthy есоnomy, these people should be able to find new jobs within a few weeks. While they are seeking 4) ____ they constitute a frictional unemployment bloc in the 5) ____. Unemployment levels of 3-4% were in the past 6) ____ normal due to 7) _____ and those unemployable for one reason or another.

When a whole industry or region has less business because of changing consumer tastes or changing 8) ____, some workers lose their jobs. There may not be enough jobs immediately 9) _______ in other industries to employ them, or they may not have the 10) _____ necessary to take jobs in other industries. This structural unemployment may 11) _____ in extended periods without work for some people.

The most serious and widespread unemployment, however, is cyclical unemployment, which occurs when there is inadequate aggregate (total) demand for goods and services. If there is 12) ____ spending in the economy 13) ____ all of the goods and services that could be produced, workers will not be able to find jobs. Those workers without jobs are 14) _____ to cut back their consumption, and this results in a further 15) _______ in output and in a further 16) _____ in unemployment.

Just as unemployment may be caused by insufficient demand, inflation may the result of too much demand. If demand 17) ____ the capacity of the economy to produce at full employment, prices will rise. Inflationary expectations and speculation 18) ____ to accelerate demand-pull inflation even more.

Another cause of inflation can be an increase in the costs of production. Shortages of 19) _____, higher wages, or 20) _____ raise prices. The 21) ____ between demand-pull and cost-push inflation can result in an inflationary spiral.