The economic growth— an increase in real and potential income (gross domestic product) over a long period of time.
Real economic growth is GDP growth in monetary terms minus inflation. It means the growth of profit, which is a source of further expansion and renewal of production and an increase in the well-being of the population. Economic growth often leads to scientific progress.
In a market and mixed economy, economic development is uneven, in the form of economic cycles.
Business cycle are periodic fluctuations in the levels of employment, production and inflation; business cycle period.
Phases of the economic cycle:
- economic recovery (peak) - almost full employment active population, the constant expansion of the production of all goods and services, income growth, the expansion of aggregate demand;
- economic contraction (recession) - reduction in production and consumption, income and investment, falling GDP;
- economic recession (crisis) - the economy, having reached the bottom, is marking time;
- revival - a gradual increase in production, the industry begins to attract additional labor, the incomes of the population and the profits of entrepreneurs are growing.
The crisis is characterized by:
- reduction of production and profit;
- sometimes forced fall in prices;
- a drop in real (and sometimes nominal) wages;
- declining standard of living.
Types of crises depending on the causes:
- crisis of overproduction - generated by growth production capacity and overproduction of goods;
- structural crisis - associated with the birth of new industries and technologies and the withering away of old ones;
- market crisis - associated with the cyclical fluctuations in supply and demand in the market;
- seasonal crisis - generated by the technological specifics of some sectors of the economy.
Economic development- the process of the economy going through all phases of the economic cycle, not only growth, but also recession, which can be accompanied by both relative and absolute decline in production volumes.
System of National Accounts is a set of statistical economic indicators, which characterize the values of the total product and total income and allow assessing the state of the country's economy.
Macroeconomic indicators allow
- measure the volume of production at any given time;
- determine the factors that directly affect the development of the economy;
- track dynamics and build forecasts economic development;
- to develop the state economic policy.
| Name | Characteristic |
| Gross national product (GNP) | this is the total market price all final goods and services produced by the citizens of a country with the help of their means of production both in this country and in other countries for a certain period of time (usually a year) |
| Net national product (NNP) | it is the market value of goods and services actually created by the country for a certain period. NNP \u003d GNP - A, where A is depreciation |
| Gross domestic product (GDP) | this is the value of the final product produced in the territory of a given country for a certain period, regardless of whether the factors of production (labor, land, capital, entrepreneurial abilities) are owned by citizens of this country or owned by foreigners (who do not have citizenship of this country) GDP happens: - nominal GDP is expressed in prices for a given period of time; - real GDP is expressed in inflation-adjusted prices. GDP differs from GNP by the amount of net factor income from abroad. Pure factor income from abroad, the difference between the income received by citizens of this country abroad and the income of foreigners received in the territory of this country are equal |
| Net domestic product (NDP) | the value of gross domestic product minus the value of that part of GDP that went to replace the fixed capital consumed in production, reflects the production potential of the economy |
| National Income (ND) | this is the newly created value for a certain period, is the total income within the economy of a certain state, earned (created) by all owners economic resources(factors of production) |
| Personal income (LD) | this is total income received by the owners of economic resources (factors of production) |
| disposable personal income(RLD) | is the income at the disposal of households |
Other basic measures of the economy: the volume of GDP per capita, per person employed in the economy, the volume of investment in national economy, the volume of national exports and imports, etc.
| Three Methods for Calculating GDP | ||
| by income | by amount of expenses | value added |
| INCLUDED: - depreciation deductions; - indirect taxes; - wages; - income from property; - interest on capital; - rent payments; - profit of firms and corporations |
TOTAL EXPENSES: - consumption - a set of goods and services purchased households, EXCEPT for housing costs; - investments - expenses of firms for the construction of new manufacturing enterprises and equipment, the cost of households to purchase new housing, the increase in the value of the inventory of firms; |
The firm's sales net of the cost of materials purchased by the firm to manufacture its products. Only the value of goods and services used for final consumption and not for further processing is taken into account. |
| DOES NOT INCLUDE: public and private transfer payments, sale and purchase valuable papers, resale of final products, work of housewives, incomes of the shadow sector of the economy, because they are income from the redistribution of the product produced, and not its production | - state procurements, EXCEPT transfer payments; - net export - the difference between the value of exports and imports |
This value characterizes the real contribution of the company to the creation of the final product, including wages and profits. |
Plan 1. Economic growth 2. Factors economic growth 3. Extensive and intensive growth 4. Economic development 5. Business cycle
Economic growth is only a long-term increase in GDP characteristic of developed countries meaning real GDP is calculated not only in absolute values, but also per capita
Pace GDP growth Real GDP (for given year) is real GDP (for prior year) = real GDP growth in a given year GDP growth in a given year: real GDP in a given year x 100% = economic growth in a given year The richer the country, the lower the annual growth rate
Extensive growth Increasing land turnover Discovering new mineral deposits Increasing the amount of equipment Hiring additional workers Keeping production technology unchanged
Economic development The developed countries Countries with transition economy Developing countries USA, Canada, Great Britain, France, Germany, Italy, Japan 13 states of Eastern Europe, 15 states former USSR, Mongolia, China and Vietnam Indonesia, Malaysia, Thailand, Chile, etc. South and Central American countries
Causes of economic cycles Exogenous Endogenous (external) Wars, oil shocks, major innovations, climate change (internal) monetary policy governments, change in the ratio of "supply and demand", reduction in production
Consequences of economic cycles Negative Positive Unemployment Identification of a new technical framework Inflation Matching aggregate demand and supply
Terminology of the topic Economic growth is a long-term increase in real GDP both in absolute terms and per each inhabitant of the country. Extensive growth is an increase in GDP due to the expansion of the use of resources. Intensive growth is an increase in GDP due to a qualitative improvement in production factors and an increase in their efficiency. Economic development - cardinal changes in the economic life of the country, transformations in the structure of the economy. The economic cycle is the alternation of ups and downs in the movement of real GDP. "Vicious circle of poverty"
Using social science knowledge, make a complex plan that allows you to reveal the essence of the topic "Labor Market". The plan must contain at least three points, of which two or more are detailed in sub-points.
Explanation.
1. The concept of the labor market.
2. Labor market participants:
a) an employee (determines the offer on the market);
b) the employer (determines the demand in the market).
3. Features of the labor market:
a) is a market for the services of factors of production;
b) demand in the labor market is derivative.
3. The concept of unemployment.
4. Main forms of unemployment:
a) friction;
b) cyclic;
c) structural;
d) seasonal.
5. The impact of unemployment on the social and economic spheres:
a) positive;
b) negative.
6. State policy in the field of employment:
a) social support for the unemployed;
b) help in finding a job.
A different number and (or) other correct wording of points and sub-points of the plan are possible. They can be presented in nominal interrogative or mixed forms.
The presence of any two of the 2-6 points of the plan in this or similar wording will reveal the content of this topic in essence.
Answer: none
Using social science knowledge, draw up a complex plan that allows you to essentially reveal the topic "The role of the state in the economy." The plan must contain at least three points, of which two or more are detailed in sub-points.
Explanation.
When analyzing the response, the following is taken into account:
Correspondence of the structure of the proposed answer to a plan of a complex type;
The presence of plan items that allow revealing the content of this topic on the merits;
The correctness of the wording of the points of the plan.
The wording of the points of the plan, which are abstract and formal in nature and do not reflect the specifics of the topic, are not counted in the assessment.
1. Concept economic policy states.
2. Economic functions states:
a) protection of the competitive environment;
b) legal regulation market;
c) production of public goods, etc.
3. Methods state regulation market economy:
a) indirect (fiscal and monetary policy);
b) direct (legal regulation).
4. Instruments of monetary policy:
a) change in the key (discount) rate;
b) changes in the norms of required reserves;
c) open market operations.
5. Fiscal policy instruments:
a) changes in tax rates;
b) changes in budget expenditures.
6. Priority of indirect methods of economic regulation.
The presence of any two of the 2, 3, 4/5 points of the plan (represented as paragraphs or subparagraphs) in this or similar wording will reveal the content of this topic on the merits.
Answer: none
Using social science knowledge, draw up a complex plan that allows you to reveal the essence of the topic "Family Economics". The plan must contain at least three points, of which two or more are detailed in sub-points.
Explanation.
The wording of the points of the plan, which are abstract and formal in nature and do not reflect the specifics of the topic, are not counted in the assessment.
1. Sources of family income:
a) salary;
b) profit;
G) bank interest by deposit;
e) dividends;
f) income from the sale of products produced in the subsidiary farm, etc.
2. Types of families depending on income:
a) families with a fixed income;
b) families with variable incomes.
3. Nominal and real family income.
4. Structure of family expenses:
a) rent and utility bills;
b) food;
c) transportation costs;
d) large purchases (acquisition of household appliances, clothing
5. Differences in the wealth of families and their smoothing by the state.
6. Influence of inflation on family incomes.
The presence of any two of the 2, 3, 4 points of the plan (presented as paragraphs or subparagraphs) in this or similar wording will reveal the content of this topic on the merits.
Using social science knowledge, draw up a complex plan that allows you to essentially reveal the topic "Costs in the activities of enterprises." The plan must contain at least three points, of which two or more are detailed in sub-points.
Explanation.
When analyzing the response, the following are taken into account:
The presence of plan items that are mandatory for the disclosure of the proposed topic;
The correctness of the wording of the points of the plan in terms of their relevance to the given topic;
Correspondence of the structure of the proposed answer to the complex type plan.
The wording of the points of the plan, which are abstract and formal in nature and do not reflect the specifics of the topic, are not counted in the assessment.
One of the options for the disclosure of this topic.
1. The concept of firms' costs.
2. Types of company costs:
a) internal;
b) external (constant, variable).
3. Fixed costs of the firm:
a) payment of rent;
b) payments on loans;
c) fixed salary for management personnel, etc.
4. Variable costs:
a) piecework wages for employees;
b) payment for raw materials;
c) transportation costs, etc.
5. Ways to reduce the company's costs:
a) the introduction of more advanced equipment;
b) professional development for employees;
c) economies of scale, etc.
6. The concept of the company's profit.
Possible other number and (or) other correct wording of paragraphs and subparagraphs of the plan. They can be presented in nominal, interrogative or mixed form.
The presence of any two of the 2, 3, 4, 5 points of the plan (represented as paragraphs or subparagraphs) in this or similar wording will reveal the content of this topic on the merits.
Using social science knowledge, draw up a complex plan that allows you to reveal the essence of the topic "Inflation". The plan must contain at least three points, of which two or more are detailed in sub-points.
Explanation.
When analyzing the response, the following is taken into account:
Correspondence of the structure of the proposed answer to a plan of a complex type;
The presence of plan items indicating that the examinee understands the main aspects of this topic, without which it cannot be disclosed on the merits;
The correctness of the wording of the points of the plan.
The wording of the points of the plan, which are abstract and formal in nature and do not reflect the specifics of the topic, are not counted in the assessment.
One of the options for the disclosure plan for this topic:
1) The concept of inflation.
2) The main sources of inflation:
a) an increase in nominal wages that is not due to an increase in labor productivity;
b) rising prices for raw materials and energy carriers;
c) increase in taxes on the producer;
d) reducing production while maintaining the money supply;
e) issue Money to cover government expenses.
3) Main types of inflation:
a) by the nature of the flow (open and hidden);
b) depending on the growth rate (moderate, galloping, hyperinflation);
c) for reasons of occurrence (demand-pull inflation, cost-push inflation).
4) Consequences of inflation for the economy:
a) positive consequences moderate inflation(stimulating investment, stimulating the growth of production and trade);
b) the negative consequences of high inflation (disruption of the economic regulation system, depreciation of the entire accumulation fund and loans, depreciation real income population reduction in current consumption reduction in investment).
5) Measures to overcome high inflation:
a) control over the issue of money, the withdrawal of excess money;
b) reduction of budget expenditures;
c) development of production, overcoming the recession in the economy.
A different number and (or) other correct wording of points and sub-points of the plan are possible. They can be presented in nominal, interrogative or mixed forms.
The presence of any two of 2-5. paragraphs of the plan in this or similar wording will reveal the content of this topic in essence.
1. The economic growth
2. Cyclical economic development
Topic 1. Economic growth
1. Economic growth: concept, types and indicators
2. Factors, theories and models of economic growth
1. Economic growth: concept, types and indicators
In the theory of economic growth, the central problem is to increase the scale of social production on the basis of a quantitative increase in production factors and their qualitative improvement.
Types of economic growth
There are two types of economic growth:
1. extensive
2. intense
Extensive economic growth characterized by an increase in the volume of social production through a quantitative increase in the same qualitative factors of production, expanding the field of activity.
Intensive economic growth is associated with an increase in the volume of social production by involving in the economic circulation more qualitatively improved factors of production and technologies.
Economic growth indicators
Economic growth indicators are: the rate of growth or growth of GDP or national income (NI) for a certain period of time, or the same indicators, but correlated with the population of the country, i.e. GDP or NI coming per capita.
Absolute and specific indicators make it possible to assess economic growth from various positions. GDP growth rates and their absolute value are more suitable for assessing the growth economic power state-va, its military-strategic potential, political influence on international relationships, its place and role in the geopolitical alignment of forces.
Specific indicators make it possible to more accurately determine the socio-economic well-being of the nation, the standard of living of the population of individual countries, regional and other groupings.
These indicators reflect the vast majority of the level of development material production and material well-being.
2. Factors, theories and models of economic growth
Factors of economic growth:
1. Natural resources;
2. Labor resources;
4. Socio-economic system as a resource.
Under natural resources the whole set of natural and climatic conditions for the implementation of the process of social production is understood: soil fertility, climate, mineral resources, forests, the wealth of rivers, lakes and seas, virgin lands and spaces not affected by anthropogenic activity.
Russia has all the natural resources like no other country in the world. The country faces the following challenges: one side, create all the necessary prerequisites for the revival of economic activity and the rise of economic development, with another - limit or eliminate production technologies that are harmful to the environment.
Labor resources - this is the most important factor of economic growth, the state of which determines the possibility of involving other resources in the economic turnover, the use and interaction of other factors.
Potential labor resources depends on the size of the population, its gender and age structure, the level of general and vocational education, the development of science, which, through the human factor, ensure the interaction of directly living labor in production with general and joint labor, i.e. interaction and cooperation of different levels of labor of contemporaries and previous generations.
capital resources. Despite new trends in social production, in the current economy, capital occupies a dominant position in relation to labor, from the point of view of its organizing principle in social production, its management functions and risk, the desire for effective returns, and competitive force.
Of decisive importance is the level of technology used in social production, an increase automatically leads to a change in the level of requirements for the labor force, its structure, and changes in the technological and reproductive structures of capital. This is the factor that most directly affects the change in structures at all levels. economic system from the division of labor to management.
Socio-economic system as a resource. In this case, we mean two aspects of the functioning of the economic system:
the first associated with the state economic mechanism on which the rationality and efficiency of the use of available resources depends;
second the moment is determined by the level of income received and their distribution for consumption and supply.
Theories and models of economic growth
In economics there is two main directions of economic growth theories: 1. neo-Keynesian
2. neoclassical
The neo-Keynesian direction arose on the basis of the ideas of J. M. Keynes about the relative instability of the capitalist economy and macroeconomic equilibrium.
The neoclassical direction has its roots in the views of Adam Smith on the self-regulation of a market economy, Say's factor theory and John Bates Clark's theory of the marginal productivity of economic factors.
Neo-Keynesianism
The most famous are the models of economic growth created by the English economist Roy Harrod (1900-1978) and the American economist of Russian origin Yevsey Domar (1914-1997). The versions of the model proposed by them are similar; they analyze a long transition of sustainable economic growth, one of the main conditions of which is the equality of savings and investment.
Neoclassical direction
At the center of the neoclassical trend is the idea of equilibrium based on optimal market system, considered as a perfect self-regulating mechanism that allows the best use of all factors of production, not only an individual economic entity but also the economy as a whole.
A significant contribution to the development of the theory of economic growth was made by the Nobel Prize winner American Robert Solow (born 1924), who modified the Cobb-Douglas production function by introducing another factor - the level of technology development.
Topic 2. Cyclicity of economic development
1. The cyclical nature of economic development and its causes. Phases of the business cycle
2. Types of economic cycles. Counter-cyclical regulation
1. The cyclical nature of economic development and its causes. Phases of the business cycle
Under the cycle refers to the frequency of repeated imbalances in the economic system, leading to the curtailment economic activity, recession, crisis. Cyclicity is the general norm of the movement of a market economy, reflecting its unevenness, the change of evolutionary and revolutionary forms of economic progress, fluctuations in business activity and market conditions, alternation of predominantly extensive or intensive economic growth; one of the ways of self-regulation of the market economy.
The reasons
The formal possibility of crises, and consequently of cycles, is already inherent in the simple circulation of commodities and is connected with the function of money as a medium of circulation. The discrepancy between the acts of purchase and sale in place and time creates the prerequisites for a break in the single chain of transactions for purchase and sale. Another formal possibility of a crisis is related to the function of money as a means of payment. Credit relations are based on the future solvency of buyers or sellers, a failure in only one link in the credit chain breaks it and causes a chain reaction that can lead to a breakdown in the social production system.
Phases of the business cycle
In the cycle, the economy goes through certain phases (stages), each of which characterizes a specific state of the economic system. These are phases: - crisis;
depression;
Revitalization;
lifting.
A crisis - it is an internal mechanism for forcibly adapting the size of social production to the volume of solvent demand of economic entities. This is a general overproduction, a deep shock to the entire economic system from top to bottom. There is a fall in prices, growing distrust of the subjects of the market economy, the bill ceases to play the role of securities, many enterprises are going bankrupt. A crisis gives rise to a new economic cycle or can interrupt phases of recovery or recovery.
Depression characterized by a stagnation of production, the retirement of obsolete fixed capital, primarily machinery and equipment, which is an important prerequisite for reducing production costs in order to adapt to the obsolete low price level. Low prices contribute to the dissipation of accumulated commodity stocks, although some of them are destroyed. Low level economic activity leads to mass unemployment.
revival associated with the activation of household activities. Partial renewal of fixed capital, growth in production volumes, an increase in the level of prices, profits and interest rates, the adaptation of the economy to the newly formed price level. In this phase, the unemployment rate decreases slightly, the circulation of capital accelerates, the demand for credit increases, interest rates.
Climb determined by the continuation of the economic growth started in the previous phase, the achievement of relatively full employment, the expansion of production capacities, their modernization, the creation of new enterprises, interest rates continue to rise under the influence of investment growth.
2. Types of economic cycles. Counter-cyclical regulation
Kinds
Economic theory distinguishes a number of cycles of economic development:
1. longwave cycles, expressing long-term fluctuations in economic activity with a period of about 50 years and called " Kondratiev cycles"(named after the Russian expert Nikolai Dmitrievich Kondratiev (1892-1938); Kondratiev considered large cycles as long periods of disruption and restoration of economic equilibrium and believed that their causes "lie in the cyclical action of the accumulating fixed social capital and its placement and, accordingly, in the cyclical development and redistribution of productive forces.
2. normal, or large, industrial cycles with a period of 8 to 12 years ( "Juglar cycles"), named after the French expert K. Juglar (1819-1908) for his study of industrial fluctuations in France, Great Britain and the USA;
3. small cycles, or "Kitchin cycles" (named after the American ek-ta - Kitchin (1861-1932), duration from 3-4 years and covering the period that is necessary for the massive renewal of fixed assets.
Counter-cyclical regulation consists in a system of ways and methods of influencing the economic situation and economic activity, aimed at mitigating cyclical fluctuations. At the same time, the efforts of the state-va have the opposite direction of the emerging situation at each phase of the economic cycle.
The two main counter-cyclical approaches are:
1. Keynesian;
2. classical.
Keynesians, focuses on the regulatory role of the state with its fiscal instruments, which are used either to reduce or increase spending, or to manipulate tax rates, contraction or expansion of the system of tax incentives.
Proponents of the classical directions, focus their attention on the offer. It is about ensuring the use of available resources and creating conditions for efficient production, withholding support from low-efficient industries and sectors of the economy and promoting free market forces. Monetary regulation becomes the main tool. The money supply becomes the main lever of influence on the national economy, a means of combating inflation.
