Toshkent m oliyainstituti

Task 2. Read and retell the text.
A cycle is a repeating period of time. The term we use to describe how the economy 
moves from good times to bad times and back again is business cycle. The four stages of 
the business cycle are prosperity, recession, depression, and recovery. Sometimes this 
series of stages is like a roller coaster. For a while, everything seems to be going very 
well. Jobs are plentiful, and anyone who wants to work can find a job. People feel good 
about the economy and are willing to spend their money. Because people are buying, 
business is good. And when business is good, we say we are enjoying prosperity, 
Prosperity is' the high point of a business cycle. Sometimes it's called a boom. 
Employment is way up, the demand for goods and services is high, and businesses are 
turning out goods and services as fast as they can. Sometimes the economy has problems, 
but not serious enough to cause real alarm. If the demand for goods and services falls and 
unemployment rises, the economy may be in a recession. Spending falls, so fewer goods 
and services are demanded. We can measure a recession by the amount of drop in the 
gross national product. Sometimes a recession is caused simply by either business or 
consumers in general becoming worried about the economy. People may become 
concerned about spending so much of their income. If they cut back on their spending, 
demand for goods and services falls. Businesses may find that they have expanded as 
much as they safely can. If many of them cut back on production, we may experience a 
recession. The lowest point a business cycle can reach is called a depression. In a 
depression our gross national product also falls to its lowest point. Business is bad, and 
unemployment is high. The final stage in a business cycle is called a recovery. During 
such a time, people who have been out of work begin to find jobs. Consumers begin to 
buy more products and services again. The gross national product, which is a measure of 
the recovery, begins to rise again.