Video vote cap by business English part dot com Macroeconomics relates to economic trends on a national and international scale.

In this lesson, we'll look at some key macroeconomic terms, such as GDP and GNP.

We'll explore the natural business cycle, which includes periods of expansion, recession and sometimes even depression.

We'll also look at the idea of trade balance between countries, which can be described as either a trade surplus or a trade deficit.

GDP, gross domestic product GDP or gross domestic product is the value of all goods and services produced within a country's borders.

In 2012 the United States had the world's highest GDP at over $15 trillion.

GNP gross national product GNP, or gross national product, is the value of all goods and services produced by a country's people wherever they are located.

The Philippines has a significantly higher GNP than it's GDP, as it has a large number of overseas workers Business cycle business cycle.

The business cycle refers to changes in the economy or the rise and fall of GDP over time.

The business cycle includes five stages growth, peak recession, trough and recovery.

Central banks often adjust interest rates to help the economy avoid huge swings in the business cycle.

EXPANSION Expansion expansion is the part of the business cycle when GDP increases, expansion continues until the economy reaches a peak.

The 19 fifties was a period of great expansion for the US economy.

RECESSION recession A recession is the part of the business cycle.

When GDP falls.

By most definitions, a recession happens when GDP decreases for two consecutive quarters, government spending may be increased to help a country recover from a period of recession.

DEPRESSION, DEPRESSION A depression is a serious recession that lasts two or more years.

A depression usually involves high unemployment and low output and investment.

Unemployment in Germany during the Depression of the 19 thirties reached nearly 30%.

TRADE BALANCE.

BALANCE OF TRADE A country's trade balance is the difference between how much it imports and how much it exports.

Several economists have suggested restricting oil imports as a way of improving the balance of trade trade deficit.

TRADE DEFICIT A country has a trade deficit when it imports more than it exports.

TRADE SURPLUS TRADE SURPLUS A country has a trade surplus when it exports more than it imports, with a boom in the export of natural resources, Australia is enjoying a trade surplus.

Now it's your turn to practice some of the words we have studied in this lesson.

In a moment you'll hear a Siris of sentences with the word replaced with a beep.

Repeat each sentence, including the missing word.

For example, if you here central banks often adjust interest rates to help the economy avoid huge swings in the business.

You can say central banks often adjust interest rates to help the economy avoid huge swings in the business cycle.

We'll play the correct answer after each question ready, Let's give it a go.

The recession in Greece has now become a full scale mhm answer.

The recession in Greece has now become a full scale depression.

Before the problems of 2000 and eight, the world economy had a great period of answer.

Before the problems of 2000 and eight, the world economy had a great period of expansion.

We need to increase our exports to improve our trade.

Mhm answer.

We need to increase our exports to improve our trade balance.

That's all for this episode of video vocab.

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