Cyclical economic development and economic growth

1. Theme 12. Cyclical economic development and economic growth

2. 1. Cyclical development of a market economy.

3. Following one after the other ups and downs in economic activity over a number of years called the business cycle.

4
Еconomic
activity
3
1
2
1. - "Recession"
2. - "Stagnation“
3. - "Revival“.
4. - "Peak“
time

4.

The causes of business
cycles
internal - technical
innovations (renewal of fixed
capital), the accumulation of
external - the impact of the
money, that is related to the
forces of nature (sun spots,
internal mechanism of the
natural disasters, crop
economic system, which
failures) and political factors
gives impetus to economic
(wars, strikes)
self-replicating cycle, when
the peak followed by decline
and recession - peak

5.

The economic crisis of
overproduction has two sides
devastating. It is
improving. It is
associated with the
inevitable, because
removal of the existing during the Depression
abnormal proportions
falling prices makes
in the economy, when
production
the production of goods unprofitable: it does
is much higher than
not give the usual, the
consumer demand.
average profit.

6. 2. The economic cycle and its variants

7. The Economic cycle and its variants

Kitchin cycles (cycles of reserves) -short waves (2-4 years) on the
basis of a study of the accounts and sales prices moving inventory.
The medium-term crisis Zhuglara (business cycle, industrial cycle) - 712 years. They coincided with the cycles of investment, which in turn
brought about a change of GNP, investment, and employment.
Kuznets cycles (16 - 25 years).In construction, they have the largest
relative amplitude.
Kondratieff cycles (40 -60 years).

8.

Crises of the late twentieth century are
different from those that occurred
earlier.
Fourth, in the
postwar period
Secondly - the
First of all, - the
has increased
shorter was the Third, blurs the
phase of the
the duration of
depression
boundaries
crisis was
recovery phase
phase, and in
between the
accompanied
and the
phase of
the post-war
amplitude of
by increased
recovery and
crisis it is
fluctuations in
general level of
difficult to
recovery phase.
prices.
business
detect.
activity decreased.

9. 3. The concept of economic growth and its measurement

10.

• Economic growth - the increase of potential
and real GNP growing economic strength of the
country.
• It is measured in two interrelated ways: an
increase in real GNP or NNP (gross and net
national product) for a certain period of time or
an increase in the national product per capita, an
increase in living standards.
• The essence of economic growth is to allow and
playing at a new level the basic contradiction of
the economy: between the immensity of the needs
and limited resources.

11.

Goals are to economic
growth
Maintenance
Raising living
of national
standards
security

12.   Economic growth is measured by the following indicators:

Economic growth is measured by the
following indicators:
• increase in quality of life (social protection of unemployed, the
disabled)
• increased investment in human capital
• NI growth per capita
• improving the quality and increasing diversity of manufactured goods
and services
• . improve the distribution of NI in the population, ie growth in real
income per capita
• increase in free time
• reducing inflation
• employment growth

13. Average. year. % = GNP growth this year, GNP growth last year                            GNP growth last year  

Average. year. % = GNP growth this year, GNP growth last year
GNP growth last year