Match the English words and word combinations with the Ukrainian equivalents.

TEXT 8

Read the text look carefully at each line. There are six summary sentences. Arrange them in order of their mentioning in the article. There is an extra summary sentence which you do not need. There is an example at the beginning.

A. The arguments for and against voodoo economics. ___

B. Triple promise of voodoo economics.____

C. The origin of the term “voodoo economics”. 1

WHAT IS VOODOO ECONOMICS?

1.Voodoo economics is a derogatory term used to describe the economic process known as supply-side economics. The term was used by then-presidential candidate George Herbert Walker Bush, in his fight against Ronald Reagan for the Republican nomination in 1980. Voodoo economics is a complicated system that uses tax cuts as incentives to saving and increasing labor.

2. Supply-side economics focus on increasing the supply of goods and services. According to some economists, by increasing supply, you will increase demand. This may seem contradictory, but it is often true that a market flooded with products will induce lower prices for the consumers, as companies compete for business.

3. In theory, higher taxes discourage work, as they reduce the amount of take-home pay after taxes. They also reduce savings, as the after-tax amount in a savings account is lower. Lowering taxes on labor will lead to more take-home pay, and also means that employers can set wages lower because workers will be satisfied by the higher percentage of money they take home after taxes. Theoretically, voodoo economics should lead to an increase in labor, employment, and savings.

4. The main purpose of voodoo economics was to reduce inflation and make a dent in the towering national debt. Using the principles of supply-side economics, Reagan insisted that reducing taxes would not only spur supply but create so much revenue due to increased employment and production that the country would be making money instead of losing it. With the triple promise of lower taxes, higher employment, and cheaper products, it is easy to see why voodoo economics was an attractive proposal in theory.

5. Some still argue that supply-side economics works in properly controlled situations, and point to the increase of economy growth during Reagan’s presidency. Critics point out that the growth was not a result of tax cuts but rather a natural recovery from the tremendous recession of the previous decade. Probably the biggest factor in the problems with voodoo economics is the over-estimation of increased worker productivity. While cutting taxes may create new jobs, it cannot make people work more hours or longer weeks.

6. The unintended consequence of voodoo economics was a large increase in the national debt, and the loss of what many consider to be vital social programs as government-funded programs had to be cut in response to the tax cuts. Branding the system as “voodoo” was an attempt by a candidate to suggest that the theories of supply-side economics were based on magic and imagination, rather than realistic expectations made from solid theory.

2. Find the English equivalents for the following words and word combinations in the text:

1. Економічне шаманство

2. Економіка пропозиції

3. Зниження податків

4. Попит

5. Ринок, переповнений продукцією

6. Споживач

7. Чистий заробіток

8. Заощадження

9. Ощадний рахунок

10. Робоча сила

11. Зайнятість

12. Інфляція

13. Державний борг

14. Дохід

15. Спад

16. Продуктивність праці робітника

17. Той, що фінансується урядом

3. Answer the questions:

1. What kind of policy is called voodoo economics?

2. List its possible pros and corns.

3. How much are you in favour of voodoo economics ideas?

TEXT 9

Read the text. For question 1-5, choose the answer A, B, C or D which you think fits best according to the text.

1. William Phillips`s theory was elaborated on the basis of the analysis

 of:_________.

A) wage data

B) public opinion

C) consumer goods basket

D) distribution of occupations

2. According to the Phillips curve, the relationship between unemployment rates and the rate of inflation is____________.

A) proportional

B) inverse

C) unestablished

D) complicated

3. According to the Phillips curve, when level of employment is high, prices tend to be higher because of:_____________.

A) an increase in supply

B) an increase in workers` salaries

C) the need for attracting new customers

D) commodity imports

4. According to the Phillips curve, when unemployment rates increase companies do not raise prices on products because of:_____________.

A) low consumer purchasing power

B) an increase in demand

C) customers` desire to save up

D) pegging of prices

5. The main point for the Phillips Curve criticism includes the fact that:_____________.

A) it is useful only for near-term outlook

B) in practice, the relation between inflation and employment rates is entirely country specific

C) it has nothing to do with the relation between inflation and employment rates

D) it falsifies other economic regularities