Exercise 1. Using the information from the text, say weather the following statements are true or not.
1. Inflation is a kind of weakness in an economic system.
2. One major cause of inflation is an increasing demand for goods and services.
3. The second cause of inflation is a fall in the cost of the factors of production.
4. Inflation is a kind of weakness in an economic system.
5. Inflation is not problem for all consumers.
Exercise 2. During a time of inflation, what do you think happens? Give a reason for each of your answers.
Do prices go up or down?
Do Salaries and wages go up or down?
Are there too many goods or not enough goods to buy?
Does the value of a dollar rise or fall?
Task 3. Grammar
Exercise 1. Fill in the correct form of the past tense: simple or progressive.
1. _______ on my report when the phone ________.My wife _________to know when I _________home. (WORK, RING, WANT, COME)
2. He ____________down the street when he _________ his old schoolteacher on the other side. (WALK, SEE)
3. During the time I ________in South Africa I never _____a serious crime. (SPEND, SEE)
4. While they __________lunch at the new restaurant, a journalist __________up to them and ______to ask a few questions. (HAVE, COME, WANT)
5. The farmer __________the whole neighborhood with fruit and vegetables. (SUPPLY)
6.The hairdresser _______up her shop, _____into the car and ______ home. (LOCK, GET, DRIVE)
7. My brother _______ to contact me at the office, but he _______ me because I ________lunch with a customer. (TRY, CANNOT REACH, HAVE)
8. Jack __________ over the carpet because he __________ attention to where he ___________. (TRIP, NOT PAY, GO)
9.Where _________when I _____across you yesterday?(YOU GO, COME)
10.I __________him off at the airport when the police __________and _________him. (SEE, COME, ARREST)
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