Use of English

Economic Ups and Downs

For many people, the economy is something they only think about when prices suddenly go (0) UP. Yet even people who never read financial news are affected by changes in growth, employment and consumer confidence. When inflation starts to (1) .........., families often cut back on unnecessary spending and begin to worry about how far their salaries will stretch. At the same time, small businesses may struggle to (2) .......... up with rising costs, especially if demand is already weak. Governments then have to decide whether to step (3) .......... and offer support, or wait and hope that the market recovers by itself. In some cases, a central bank may bring interest rates (4) .......... to encourage borrowing and investment. However, if confidence has already (5) .......... away, consumers may still hold back. Economic recovery rarely happens all at once. Some sectors pick (6) .......... quickly, while others take longer to recover. Companies that had previously taken (7) .......... too much debt are often the most vulnerable. Even so, experts point out that economies can bounce (8) .......... if sensible decisions are made early enough.