1The concept of “resident” is crucial to the compilation of GDP, GNP, BOP and ED statistics. Practically, residents of a country or territory include individuals and organizations. According to international standards, for individuals, residents refer to those who normally stay in the economic territory of the country or territory, irrespective of their nationality. For organizations, residents refer to those which ordinarily operate in the economic territory of the country or territory. The economic territory of a country or territory is the geographic territory administered by the government of the country or territory within which persons, goods and capital circulate freely. Conceptually, the residence status of individuals and organizations depends on their center of economic interest.（14分）
2Inflation is what happens when price in a particular country rises so high and so quickly that they upset the nation’s economy. Price may start rising rapidly because people want to buy more goods than there are goods to go round. Fears of still higher prices may cause people to rush out and buy things while they can still afford them. Thus the demand for goods increases and the cost of them goes up faster. One cure would be for people to stop buying, but, of course, it is difficult to persuade people to stop buying things they want. Workers whose wages buy less, old people whose pensions are no longer enough to live on, students whose grants no longer support them all press for increased money to keep up with prices. Higher wages often mean dearer goods.（16分）
3Cameras follow Chairman Alan Greenspan before each meeting of the Federal Reserve’s Open Market Committee. Commentators make amused guesses about his frame of mind.CNBC plays the “Mission Impossible” theme or a disco beat. But the stakes are nothing to joke about. A tough-love Fed decision can cost world markets a cool trillion or two. Higher interest rates slow business growth,with fewer new Jobs in America and beyond. Good news can mean a windfall.（10分）