2. Give English equivalents of the following:

купувати з метою розширення наймати робітників

та поліпшення виробничих особистий прибуток

можливостей рівень зайнятості

передбачення майбутнього загальні витрати

збуту та прибутків рівень цін

задовольнити потреби споживача у цьому розумінні

учасники ринкових відносин

III. Fill in the blanks with appropriate words:

1. Aggregate demand is the total ... aggregate supply of output demanded at alterative combination price levels in a given time period. market participants

2. Equilibrium is the ... of price level expenditures and real output that is compatible aggregate demand with both ... and aggregate quantity supply. to hire

3. ... is the total quantity of output pro- goods ducers are willing and able to supply services at alternative price levels in a given demand time period. sufficiently

4. Aggregate spending is the rate of expenditure total ... desired at alternative levels income of income. Interest rates

5. The role of business firms in factor markets is ... available workers and other factors of production to produce ... and ... .

6. In fact all of the income spent in product markets ends up as income for ... .

7. Firms will ... more labor only if the demand for the goods and services such labor producer is ... strong.

8. Consumption decisions are influenced by a variety of forces, including ..., prices, ..., wealth and expecta- tions.

9. Investment is ... on new plant and equipment in a given time period, plus changes in business inventories.

IV. Read and translate the text:

Producers have some notion of how much output they are willing and able to produce at various price levels. Likewise, consumers, businesses, governments, and the rest of the world have some notion of how much output they are willing and able to buy at different price levels. These forces of aggregate demand and aggregate supply confront each other in the market place. Eventually, buyers and sellers discover that only one «price-output» combination is acceptable to both sides. This is the «price-output» combination we designate as (macro) equilibrium.

At equilibrium, the aggregate quantity of goods demanded exactly equals the aggregate quantity supplied. In the absence of macro disturbances, the economy will gravitate toward equilibrium — and stay there.

Dollar expenditures (total spending) are directly related to the flow of real goods and services; the level of employment depends on the willingness of people to spend their incomes. Businesses hire workers only if the goods and services such workers produce can be sold in product markets. Firms will demand more labor only if the demand for goods and services such labor produces is sufficiently strong.

In this sense we say that employers have a derived demand for labor, a demand that is derived from demands for final goods and services.

Consumer expenditures account for two-thirds of total spending in the U.S. economy. We need to determine what factors influence the rate of consumption and thus the potential for achieving full employment.

Consumption decisions are influenced by a variety of forces, including income, prices, interest rates, wealth and expectations.

Disposable income (Dl) represents the amount of income consumers can actually choose to spend or not spend (save) in a given time period.

Business firms purchase a new plant and equipment for the purpose of expending or improving their output capabilities; such purchases are called fixed investment. Firms also acquire inventories of goods that can be used to satisfy consumer demands; such expenditures are called inventory investment. Both forms of investment represent a demand for output and are therefore counted as part of aggregate spending.