Economic growth and development - two categories that are closely cooperating with each other.Economic growth, for example, is perpetrated rise sharply.During the movement of social production, there are periods during which the overall economic growth and development take place quickly enough or, conversely, slows down, sometimes even seen them slump.At a certain regular repetition of movements of social production of such oscillations for a certain period of time with the cyclical development is specificity.Gap certain cycle (known as single) shows fluctuations in the economy of the state from one crisis to another.
economic growth and cyclical development show the constant fluctuation of the market economy, in which the volume of production increases, the fall.And associated with the business activity index of the economy as it tends to increase, then a decrease.Cyclical itself implies periodic ups and downs of market conditions.In this period of increased activity primarily characterized the extensive economic growth and development, and the reduction in business activity is the beginning of intensive development.Thus, the cycle shows permanent dynamism of the market economy.
relationship between economic growth and economic development is very well illustrated in the "big waves" Kondratiev.Academician said proved that any economy is experiencing certain fluctuations that entail ups and downs.Their length takes up to 50 years.The theory of economic cycles also did not deny the existence of "small waves", by which is meant the consideration of recessions and growth of business activity, but only in specific industries.The frequency of these cycles is only five years.
economic growth and development go hand in hand with each other explains the objectivity of cyclical economic fluctuations.Understanding their development will allow to adapt to the downturn in the economy, which will significantly reduce the negative impact of factors arising from the economic development of the state.
And one such factor that has a significant impact on the stability of the economy, is the increase in population.Thus, the increase in the proportion of the population with the simultaneous presence of the effect of the disposal of capital due to lower capital intensity of production can act in only one direction.By reducing inventory levels reduced the amount of capital, while population growth capital is also among the negative trend of increased number of employees.
order to maintain stability in the economy need to compensate the negative impact of the disposal of capital and a sharp rise in the population of the necessary volume of investment.It is this economic condition with the gradual growth of the population and contributes to the immutability of the capital, and the rate of output per worker.
