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Innovation in Learning

BUSINESS VOCABULARY

The economy
Lesson code: 9ZE7-M1NA-E17B

INTERMEDIATE +

1 Economic indicators
Match the economic indicators on the left with their definitions on the right and complete the text about
the Indian economy.
1. Gross Domestic Product (GDP)

a. the amount that banks charge on the money that they lend

2. unemployment rate

b. the percentage of employable people who are without jobs

3. inflation rate

c. the rate at which prices are rising

4. budget deficit

d. the value of all the goods and services produced in a particular

country

5. interest rates

e. when the amount that a government spends is more than the

amount it collects in taxes

India's economy is the tenth largest economy in the world in terms of

, which was
$1.87 trillion in 2013. It is also one of the fastest growing economies in the world. However, recently
a sharp drop in investment has caused the government to reduce its economic growth projections.
2
of
Investors have been discouraged for a number of reasons, including India's high
3
in order to
nearly 10 per cent. In response, India's central bank decided to increase
encourage people to save money and therefore stop prices from increasing further. Another concern is
4
India's high
- currently around 5 per cent of GDP - caused by excessive spending.
Despite its fast economic growth, India still has a lot of problems, including huge social and economic
5
inequality and a high
- around 8.5 per cent of the adult population are out of work.

drop

2. discourage

inequality

3. encourage people

investors

4. excessive

spending

5. social and economic

to save money

6. out of

work

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1/3

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AB

1. a sharp

LE

Match the words below to form phrases from the text.

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The economy

Innovation in Learning

TM

BUSINESS VOCABULARY

2 Economic trends
Match the trends with the pictures below:
a decline in exports
a fall in unemployment
a rise in exports
an economic downturn

1.

5.

a decline in the number of investors

a growth in consumer spending
an economic boom
an increase in prices

2.

3.

4.

6.

7.

8.

3 Cause and effect

Now match the economic causes and effects below.
There is/has been/was ...

as a result of/due to/because of ...

1. a decline in exports

a. a decrease in interest rates

2. an increase in prices

b. a massive increase in consumer spending

3. a growth in consumer spending

c. a reduction in supply

4. a rise in exports

d. a stock market crash

5. a decline in the number of investors

e. a stronger currency

6. a fall in unemployment

f. a weaker currency

7. an economic downturn

g. an economic upturn

8. an economic boom

h. political instability

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AB

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Describe recent changes in your country's economy.

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The economy
A

Innovation in Learning

BUSINESS VOCABULARY

4 The global financial crisis

Match the terms on the left to definitions on the right:
1. fall into a recession

a. a situation in which property prices rise rapidly until they collapse

2. a credit crunch

b. a sudden reduction in the availability of money or credit from banks

3. a subprime mortgage

c. a type of mortgage (money borrowed from a bank to buy a house) which

is intended for borrowers with low credit ratings

4. offer a bailout

d. to enter a period of economic decline

5. a housing bubble

e. to give money to help a failing business in order to prevent negative

economic effects

Describe what happened to the global economy in 2008-2011. Use any of the words/phrases above.

5 Talking point
Answer any of the following questions.
1. What things in your country might discourage investors?
2. Is there social and economic inequality in your country?
3. Describe the positive aspects of your country's economy.

3/3

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4. Describe the negative aspects of your country's economy.

PI

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The economy - Key

A

TM

Innovation in Learning

BUSINESS VOCABULARY

1- Economic indicators

1. d

2. b

3. c

1.
2.
3.
4.
5.

GDP
inflation rate
interest rates
budget deficit
unemployment rate

1.
2.
3.
4.
5.
6.

a sharp - drop
discourage - investors
encourage people - to save money
excessive - spending
social and economic - inequality
out of - work

4. e

5. a

2- Economic trends

1.
2.
3.
4.
5.
6.
7.
8.

an economic downturn
an economic boom
a decline in exports
a fall in unemployment
a rise in exports
an increase in prices
a decline in the number of investors
a growth in consumer spending

3- Cause and effect

Cause-effect:

1. e

2. c

3. a

4. f

5. h

6. g

7. d

8. b

4- The global financial crisis

4. e

5. a

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3. c

AB

2. b

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1. d

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