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AudioTask2CheckingtheFacts1.Thesignificantfallinindustrialproductionliesintherapiddecreaseof

worldtrade.2.OvertwomillionpeopleintheU.K.havelosttheirjobs.3.TheBritishgovernmentdidn’tanticipatetheeconomicdownturn.ListentotheaudioclipagainanddecidewhetherthefollowingstatementsareTrue(T)or

False(F).ScriptFTFIt’sofficial—theBritisheconomyisinrecession.GovernmentfiguresreleasedFridayshowtheeconomycontractedbyalargerthanexpected1.5percentinthelastthreemonthsof2008,aftera0.6%dropinthepreviousquarter.Britain’sfinancechief,ChancellorAlistairDarlingacknowledgedtheeconomyhadtakenasharperdownturnthananticipated.“Ifyoulookattoday’sfigures,whatyou’reseeingisaverysignificantfallinindustrialproduction,andthat’sbeencausedbecauseworldtradehasreallyfallenawayvery,veryrapidlyoverthepastfewweeksandmonths,”saidChancellorDarling.WhatstartedasacrisisinthefinancialsectorinBritaincontinuestoinfectthewidereconomy.Unemploymentisacceleratingsharply,withnearlytwomillionpeoplenowoutofwork,thehousingmarketremainsseverelydepressedandretailsalesareweak.FortheU.K.Friday’sfiguresshowthebiggestdeclineinnearly30years.But,ChancellorDarlingwasquicktopointoutthatBritainiscertainlynotalone.“We’refacingthisproblemeverywhere,”hesaid.“Americahasbeeninrecessionforayearnow,evenGermany,Italy,Japan.CountriesintheFarEastareseeingasubstantialslowdowningrowth.”TheBritishgovernmenthasmovedtobailoutfailingbanksandhasputinplaceamulti-billiondollarstimuluspackagetoshoreuptheailingeconomy,includingacutinthenationalsalestaxandhelpforbusinesses,homeownersandlow-incomefamilies.ScriptVideoTask3CheckingYourComprehensionWatchthispartofthevideoclipandanswerthefollowingquestions.1.DoesLakshmanAchuthanagreewiththecommondefinitionofrecession?Why?

Answer:No,becausehethinks“recession”isreallyasequenceofevents.He

believesitis

necessarytolookatthesequenceofindicatorstodefine

recession.2.Whataretheconsequencesoffallingwages?Answer:Peoplecan’tbuythatmuchandsalesfall./Peoplespend\lessandsalesfall.3.Howmanypeoplemadejoblessclaimslastweek?Answer:400,000.4.Accordingtothereporter,whatsignsshowthatarecessionisactuallyinprocess?Answer:Inflationisgoingupatthefastestratein17years,whilewagesarenotkeepingup;andlastweek400,000peoplemadejoblessclaims.5.WhatisLakshmanAchuthan’sopiniononthecurrenteconomicsituation?Answer:Itisinashallowrecessionandtherearenosigns/foundationsofarecovery.ScriptScriptReporter:Well,hesaidwewereinarecessionbackinMarch,andtheUSeconomy

hasskiddedalongforthepasttwoquarters.Sowherearewenow?Inthe

EconomicCyclewithmenowLakshmanAchuthan,managingdirectorof

ECRI,theEconomicCycleResearchInstitute,thanksforbeingwithus.LakshmanAchuthan:Wellthanksforhavingmeback.Reporter:Thisisacallyou’vemadealot,butwhatwerecently—andit’slikelyrightalotofpeoplearestartingtoagreewithyou—butthequestionis,we

havenotseentwoback-to-backquartersofcontractinggrowth.Thatisthe

traditionaldefinitionofarecession.LakshmanAchuthan:Yeah,it’sit—whatthatisreallyis,it’saruleofthumbthatwas,andIwasresearchingthis’cozI’veheardsomuchaboutit—itcameoutinanarticlein1974wheretherewasalaundrylistofwaysofknowingaboutarecession

forthemanonthestreet,andoneoutof,like,tenthingswastwonegative

quartersback-to-back,’coz[it]usuallyhappensarounda

recession.What

youfindisthat,that’snotthewayyoudefinearecession,becausearecession

is

reallyasequenceofevents,andsoyouneedtolookatasequenceof

indicators.Essentiallywhatyou’relookingforisforsalestofall,sobroad

salesisakeyindicator,whichthenpullsdownproduction,soindustrialproductionisanindicatortheyusetodefinerecession,whichthenhitsjobs,

becauseifproductionfalls,thenjobsaregonnafall.Youdon’tneedtohire

thatmanypeopleandthenwagesorincomecomesdown,andthat’sthelast

piece.Soit’sthesequence,andthenifwagescomedown,thenitgoestothe

frontofline,andpeoplecan’tbuythatmuch.Sosalesfallandthat’showyou

getarecession,sothetwonegativequarters,Ithink,issomethingyouoften

seethereinarecession.

…….

Reporter:Notalways.LakshmanAchuthan:Butnotalways.So2001forexample:definitelyarecession;wealmostlost3millionjobs,weloppedoffhalfthevalueoftheNASDAQ,alotofgriefaroundthere.Idon’tthinkanyonedisputesthatitwasarecession.YouneverhadtwonegativequartersofbacktobackGDP.Reporter:Yeah,andcorrectmeifI’mwrong.We’redealingwithinflationatthe,youknow,fastestratein17years.(That’scorrect.)Wagesarenotup5.6%likeinflationis,andwe’redealingwithmorethan400,000joblessclaimslastweek,we’redealingwithallofthis….goingonso,who’stosayrightnowthatwearen’tinarecession?LakshmanAchuthan:Well,Ithink,youknow,some,uh,acheerleaderoftheeconomyforonereasonoranother,someinstitutionswhowannadothat,ifyouarebullish,andyouwannahavea—youmighthaveacertainvestedinterestinarguingthat.Whatwe’retryingtodoisjustgetitrightwhere,youknow,whereareweinthebusinesscycleandwhat’sthelikelihoodofaturningpointahead.Nowwe’vealreadycalledthepeak.Ithinkwhenthedustsettles,you’regonnaseemorenegativequartersofGDP,they’regonnagetreviseddownnextyear.Andlookingforwardwhatwe’reveryconcernedaboutisanysignofarecovery,andthathasn’treallyappearedyet.Soyouknowthebadnewsisweareinarecession.Thegoodnewsisit’sbeenkindofshallowsofar,thenotsogoodnewsorongoingconcernisthatwedon’tseethefoundationsforarecovery.AudioTask2CheckingtheFactsScript

Theglobaleconomicslowdownishittingtheautoindustryhard.Demandforcarsisdownand

carmakersarehavingtocutcosts.ThelatestcasualtyinthiscrisisistheU.S.giantChrysler.Ithas

justannounceditwillslashitswhite-collarworkforcebyaquarter.Thismeans5,000employees

willlosetheirjobs.Chrysler’sCEOBobNardellie-mailedhisworkerswithaverygloomymessage:

“Thesearetrulyunimaginabletimesforourindustry.Neverbeforehaveautoindustrysalesfallenat

suchafastrate,”hewrote.Mr.Nardellialsohadbadnewsforhisblue-collarworkers.Chryslerwill

alsoaxe1,825workersattwoofitsassemblyplants.Thisnewswillsendaworryingmessagetootherautomanufacturersaroundtheworld.

TheworstcouldbeyettocomeforAmericancarworkers.Thereisadealbrewingthatcould

seeamergerbetweenChryslerandoneofitsrivalsGeneralMotors.Thiscouldleadtotensof

thousandsmorejoblossesasthenewcompanymakesdeepcostcuts.Mr.Nardellisuggestedthatmorestructuralchangesareinthepipeline.“Wecannotoperateaswehaveinthepast,”hewarned.

Chryslerisnotinapositiontorestructurequickly.NinetypercentofitsmarketisintheUSA,and

consumersarehavinghugeproblemsgettingcarloansinthecreditcrunch.Thecompanyalso

dependsonsalesofitsgas-guzzlingsportsutilityvehicles.Americancarbuyerstodayarechoosingto

buysmaller,morefuel-efficientcars.1.ArecentsurveyshowedthataveragesalariesinUScompanieshaveexperiencedthesmallestincreasethisyearinmorethan30years.2.Ifthebossdoesn’tagreetoanegotiatedfutureraise,setadateforyournextdiscussion.3.Ifthebosssaysthathecan’tgiveyoumoney,askforlessworktime.4.Whentalkingwithyourbossaboutthesalaryraise,emphasizehowhardyouhavebeenworking.5.Showingyourotherofferstoyourbosswouldbeabadidea.VideoTask2CheckingYourComprehensionWatchthispartofthevideoclipanddecidewhetherthefollowingstatementsareTrue(T)

orFalse(F).TTFFTScriptAnnouncer:ArecentsurveyfoundthataveragesalariesatU.S.companieshaverisenbyless

than2%sofarthisyear;that’sthesmallestincreaseinmorethan30years.Inthesetoughtimespeoplemaybeafraidtoaskforraises,butJillSchlesinger,Editor-at-LargeforCBSsaysit’sallinhowyoudoit.Goodmorning.JillSchlesinger:Goodmorning.Announcer:Thissoundslikethefool’serrandtoendallfools’errands.Imeanreally,seriously,

goinginandaskingabossforaraiseintheseday[s]andtimes?Jill:Iknowitsoundscrazybut,andit’strue,basesalarieshavestagnated;butthevariablecompensationthataddsinbonuses,profitsharingoptions,that’sactuallyincreasedtoalargerpartofyourtotalcompensation.Sotherecouldbewaystobeefupyourcompensation.Announcer:Seriousquestionthough.We’relookingatphenomenalunemploymentlevels,hundredsofthousandsofnewpeoplegoingintounemploymentlineseverymonthandinthisatmosphere,Iwouldbeafraidtoevenbroachthesubject.Jill:Youhavegottofindtheeyeofthetigermyfriendbecauseyoubringsomethingtoyourorganizationandyourbossneedsyou.That’sthedeal.

Announcer:Alright,solet’sgothroughhowtoexactlydothisandyourfirstpieceofadviceis

what?ScriptJill:Talkfacetofacewithyourboss.Youknow,Ican’tstandwhenpeoplesay,“OhIe-mailedmyboss.”Youe-mailedyourboss?It’slikebreakinguponapost-itnote.Don’tdothat.Yougottapresentyourlistofaccomplishments;keepthatspreadsheethandyandfocusonthemoneyyouhavesavedormadeforthecompanyandtheadditionalresponsibilitiesyouhaveassumedsincetherecessionbegan.Announcer:Becauseoftheseotherdownsizesandeverythingelseyou’redoingalltheseotherpeople’sjobs,I’mthismuchmorevaluabletoyou.Jill:Youarecriticaltothisorganizationandhere’swhyboss.Announcer:Okay,whatotherpiecesofadviceinthisprocessdoweneedtobepayingattentionto?Jill:Well,youknow,whenyou’rethinkingaboutthis,thinkaboutalsootherwaystogetyourcompensation,right?Soyoumaywanttosay,“Hey,whataboutifIcouldgetmaybeanegotiatedfutureraise?”“I’mnotgoingtogiveyouanythingnow,”yourbosssays;yousay,“Okay,howaboutinsixmonths?”“Okay,no,”bosssays,“Noway.”Thensetadateforyournextdiscussion,setspecificgoalsthatyoucanachievethatwillhelpyouout;veryimportant—thespecificgoalpart.ScriptAnnouncer:Right.Now,thiseyeofthetigerthing[Jilllaughs],I’m—noI’mveryseriousaboutthis—becauseyouhavetoplaythiswithacertainamountoffinesse,right?Ifyou’reinthereasthesqueakywheel,sometimesthesqueakywheelgetsgrease;sometimesthesqueakywheelgetskickedoff.Jill:Andifyourbosssays,“Youknowwecannotgiveyoumoney;thereareotherthingsthatyoucanget,”andthat’sreallyimportant;becauseyousay,“Alright,nomoney?Howaboutsomeotherkindsofcompensation—somemorevacation;howaboutyoupayformyeducation,getmeabettertitle,howaboutIgetactuallyaniceroffice?Makemyqualityoflifeatworkprettymuchisstinkynow,maybeitgetsbetter.”Thesethingsdomatterandyoudohavetogoinbelievinginyourself.Announcer:Alright,soallofthesethingsarethethingsyououghttodo.Whatshouldyouabsolutelynotdo?Jill:Well,weareinarecession;Ithinkyou’veheardthat?Announcer:Right.Jill:Sodon’tgoinallcockyanddon’tusetherulesofthepast,thebullmarkets.Don’tthreatentoleavebecausenoone’sleavingreally.Don’tflauntyourother[offers]—Harrysaystohisboss,“Oh,Ihaveanofferfromanothernetwork.”Well,youknowwhat,maybethat’snotthegreatestideaanddon’ttalkabouthowhardyouwork.Everybodyisworkinghard.Theyallknowyou’reworkinghard.Gointhere,beconfidentandbeclearaboutwhatyouneedandwhyyoudeserveit.Announcer:Canwejustsetuplikea1-800numbersoalltheviewerscancallyouandkindofgetthispeptalk?Jill:Baby,I’mhereforyou.Whenyougetyournextcontract,I’lldoitwithyou.I’llcoachyourmanager,okay?Announcer:Thereyougo,verygood,Jill.Thankyouvery,verymuch.Formorecareeradvice,gotoourwebpartner,CBSMONEYWATCH.com.

Graduateunemploymenthasincreasedby44%in12monthsandisnowatits1)_________in12years,accordingtoresearchreleasedtoday.Some7.9%ofstudentswholeftuniversityin2008wereoutofworkinJanuary,theHigherEducationCareersServicesUnit(HECSU)found,upfrom5.5%the2)__________year.HECSUwarnedthepicturecouldbeevenworseforthosegraduatingthisyear.Thelas

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