VOCABULARY. Business cycles – экономические циклы; циклы деловой активности

business cycles – экономические циклы; циклы деловой активности

underemployment – неполная занятость

factories are idle – заводы не работают

business failure – банкротство

permanently – надолго, навсегда

boom - бум, быстрый подъем (деловой активности)

contraction - падение/сокращение деловой активности

recession - спад

expansion - подъем экономической активности

to smooth out - устранять

economic fluctuations – экономические колебания

at capacity – в полном объеме; на полную мощность

consumer spending – потребительские расходы

spending levels – уровни расходов

lay off – временно увольнять

they have built up excess inventories – накопили излишние запасы

long-term decline –долгосрочное снижение

the bottom phase – низшая точка

severe – жестокий, глубокий

eventually – в конечном счете

to recover – восстанавливаться, выздоравливать

When people speak of business cycles, they think of things like “prosperity” and “depression”. “Prosperity” is ordinary used to describe an extended period of high employment, an improved standard of living and stable prices.

By contrast, “depression” refers to an extended period of general underemployment of economic resources. Factories are idle, millions of workers are unable to find jobs, and the rate of business failure is high. The worst depression in American history, now known as the Great Depression, lasted from 1930 to 1940. There were, for example, 13 million people, about one of every four workers, unemployed in 1933. That same year businesses failed at a record rate, and number of people lost their savings because more than 4,000 privately owned banks closed permanently.

More common, however, are much shorter and less dramatic changes in business activity. Theses changes can be described in a number of different ways, but for convenience they are called the periods of boom, contraction, recession and expansion. The way to smooth out economic fluctuations was not found yet.

Boom

At the peak of the business cycle of the economy is booming. Business is producing at or near capacity, and those looking for work can generally find jobs. During peak times, business investment and consumer spending are at very high levels. But because the economy is at or near full employment and the demand for goods and services is increasing, prices are also increasing. This sets the stage for the next phase of the business cycle.