How can the European Union, the former EEC ensure the mobility of labour?

What advantages do the citizens of the member countries of the European Union have?

What are the tasks of different branches of the European Union?

PRACTICAL ASSIGNMENT 12

Translate the sentences from English into Ukrainian.

a) 1. An increase in price of one percent resulting in an increase in supply of more than one percent, the supply is called elastic.

2. Ceiling prices being controlled by the government, goods may find their way to the black market.

3. In the next 25 years or so, the average age in the United States increasing, problems of the aged rather than young people will be of importance.

4. With a financial panic everyone wanting his money at the same time, the bank is unable to pay.

5. Cheques being accepted in payment of purchases, people feel that a bank account is as good as or even better than money in their pocket.

b) 1. The two principal economic systems were considered to be capitalism and socialism, mixed economies lying in between those.

2. Natural resources are one of the three factors of production, the other two being labour and capital.

3. Auctions make buyers bid against each other, with the seller taking a passive role.

2. The world distribution of income is unjust, with poor countries having 61 percent of the world’s population, but receiving only 6 percent of the world income.

2. Read and translate the text Inflation

Inflation

Inflation is a steady rise in the average price and wage level. The rise in wages being high enough to raise costs of production, prices grow further resulting in a higher rate of inflation and, finally, in an inflationary spiral. Periods when inflation rates are very large are referred to as hyperinflation.

The causes of inflation are rather complicated, and there is a number of theories explaining them. Monetarists, such as Milton Friedman, say that inflation is caused by too rapid increase in money supply and the corresponding excess demand for goods.

Therefore, monetarists consider due government control of money supply to be able to restrict inflation rates. They also believe the high rate of unemployment to be likely to restrain claims for higher wages. People having jobs accept the wages they are being paid/the inflationary spiral being kept under control. This situation also accounts for rather slow increase in aggregate demand.

On the other hand, Keynesians, that is, economists following the theory of John M. Keynes, suppose inflation to be due to processes occurring in money circulation. They say that low inflation and unemployment rates can be ensured by adopting a tight incomes policy.

Incomes policies, though, monetarists argue, may temporarily speed up the transition to a lower inflation rate but they are unlikely to succeed in the long run.

The costs of inflation depend on whether it was anticipated and on the extent to which the economy’s institutions allow complete inflation adjustment.

The longer inflation continues, the more the economy learns to live with it. Indexation is a means to reduce the costs of some inflation effects. Indexed wages or loans mean that the amount to be paid or repaid will rise with the price level. Indexation has already been introduced in countries that had to live with inflation rates of 30 or 40 percent for years. And the more countries adjust their economies to cope with inflation, the closer they come to hyperinflation. Indexation means that high rates of inflation are much more likely to continue and even to increase.

The longer inflation continues, the more the economy learns to live with it. Indexation is a means to reduce the costs of some inflation effects. Indexed wages or loans mean that the amount to be paid or repaid will rise with the price level. Indexation has already been introduced in countries that had to live with inflation rates of 30 or 40 percent for years. And the more countries adjust their economies to cope with inflation, the closer they come to hyperinflation. Indexation means that high rates of inflation are much more likely to continue and even to increase.

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