Based on the analysis of economic practices, economic science identifies several types of economic cycles. Austrian economistSchumpeterproposed a classification of economic cycles depending on their duration. Economic cycles are named after scientists who devoted special research to this problem.

So, economic cycles are usually classified according to their duration. Based on this criterion distinguish short-term, medium-term and long-term cycles.

TO short-term (small) cycles include cyclical phenomena lasting 3-3.5 years. These cycles are called Kitchin cycles . Small cycles arise due to the formation of an imbalance between supply and demand for market consumer goods. The elimination of such imbalances requires about 3 years, thereby determining the duration of this economic cycle.

TO medium term cycles include the so-called industrial(or classical) cycles ( Juglar cycles ) And construction cycles ( Kuznets cycles ).

Duration medium-term industrial cycles is 8-12 years. The industrial cycle is associated with the renewal of fixed capital and, accordingly, with investments. Renewal of fixed capital and investment give impetus to the development of this cycle. It is believed that the industrial cycle is associated with an imbalance of supply and demand, but not in the market for consumer goods, but in the market for means of production. Eliminating this imbalance requires the creation and implementation of new technology, which usually occurs at intervals of 8-12 years.

Medium-term construction cycles have nThe duration is 15-20 years, during which renovation of residential buildings and industrial structures occurs. Theyare associated with housing construction and the situation on the market for certain types of buildings, in particular with fluctuations in supply and demand in the housing market and in the market for buildings. The pessimistic and optimistic moods of people are of no small importance here.

TO long-term cycles include Kondratiev cycles , we are talking about the so-called Kondratieff long waves(45-50 years old). It is believed that approximately once every 45-50 years, all the cycles discussed above coincide in their crisis phase, overlapping each other. Economists associate the existence of long waves with many factors - with major scientific and technological discoveries, demographic processes and processes in agricultural production, with the accumulation of capital to create new infrastructure in the economy.

In addition to the duration criterion, there are many principles that allow classifying economic cycles: by scope (industrial and agricultural); according to the specifics of manifestation (oil, food, energy, raw materials, environmental, currency, etc.); by deployment form (structural, sectoral); on a spatial basis (national, international).

If the normal course of the process of social reproduction is interrupted by a crisis, this means a difficult transitional state of the economic system, marking the beginning of the next business cycle. A similar pattern is characteristic of the development of a market economy. It should be remembered that any crisis causes an imbalance in economic systems.

Economic crises in this regard can be classified based onscale of imbalance, according to the regularity of imbalance And by the nature of the violation of the proportions of reproduction.

According to the scale of imbalance crises are identified in the economy are common covering the entire national economy, and partial arising in any particular sphere or branch of the national economy.

According to the regularity of imbalance crises happen periodic, i.e. repeated regularly after a certain period of time, intermediate(these crises usually do not become the beginning of the next economic cycle and are interrupted at some stage of their development) and irregular arising due to specific reasons.

By the nature of the violation of the proportions of the structure of social reproduction allocate overproduction crises(imbalance between supply and demand in the market, when the supply exceeds the demand) and the crisis of underproduction(this is also an imbalance of supply and demand, but of the opposite nature - here the amount of demand will exceed the volume of supply).

Economic laws are the laws of development of production relations (or property relations), which are closely related to the development of productive forces. Such laws, similar to the laws of nature, are distinguished by their objective nature. However, they are very different from the laws of nature, since they arise, develop and function exclusively in the process of human economic activity - in production, distribution, exchange and consumption. In addition, unlike the laws of nature, economic laws are not eternal. In this article we will talk about what economic laws and categories there are.

Systematization

Experts distinguish four types of them in the system of economic laws:

• general laws are those laws that are inherent in all social methods of production. This includes the law of growth of labor productivity, the law of saving time and others.
• special. This category includes laws operating in several socio-economic formations. For example, the law of value, the law of supply and demand
• specific economic laws operate within the framework of one social mode of production. The most important is the basic economic law, which expresses the connections in the process of interaction between productive forces and property relations
• private laws are laws that work exclusively at one stage of the social mode of production. For example, the law of monopoly formation by concentration of production, operating at the highest stage of development of capitalism, approximately from the beginning of the 20th century.

Basic laws

Of all economic laws, the most important are:

• competition law
• law of division of labor
• law of labor change
• law of demand
• law of supply.

In the term “competition,” experts include the rivalry of companies that produce the same products in order to attract consumers to their products. Competition can be called one of the most important concepts of a market economy, which substantiates the laws of the capitalist mode of production. The task of competition is to guarantee conditions for extracting the greatest income and achieving cost-effective company performance.
The scope of competition law is all social production. The intensity of competition in the market for goods and services in a market economy does not cease to grow, and the types of competition, or rather, competition, become more complex, more diverse and take on an indirect nature. The results of such a struggle depend on the subjects of competition, as well as on certain material and economic conditions for the development of society.
Due to increased competition in the labor and goods markets and, at the same time, the high level of poverty of Russian citizens, the introduction of monetization of social benefits increases interest in the sociological analysis of the “hare problem” - the problems of minimizing losses to society, which are associated with the desire of citizens to use a large number of public goods, distributed without payment. However, imperfect competition in the Russian market of goods and services causes producers to strive for quick income, as a result of which it becomes unprofitable to increase the production of “public goods” distributed free of charge among the poor and impoverished segments of the population.
Important social indicators of competition include:

• competitiveness, which manifests itself in the interaction of competing parties - economic entities
• fairness of competition, which follows from the norms of ethics and culture of competing entities.

The law of division of labor divides all human labor into different types, for example, mental and physical labor; industrial and agricultural; managerial and executive. This law underlies the division of society into social groups that engage in corresponding types of work.
In the context of the development of the newest concept of the “knowledge economy”, experts are studying the status different types labor, their combination, the formation of new professions and types of work activity, the growth of the field of tertiary education, which in Russian system education corresponds to secondary and higher professional education, as well as postgraduate education (postgraduate and doctoral studies). Postgraduate education plays a decisive role in creating an intellectual base and developing new types of intellectual work.
In sociological analysis global problem One can name the social consequences of the division of social labor, namely the process of creating the Russian middle class, as well as the integration into its system of representatives of various social and professional strata of highly qualified employees.
The law of labor change is closely related to the law of division of labor and represents the “universal law of social production.” The formation of this law was recorded during the Industrial Revolution of the 16th-19th centuries, when there was an increase in the dependence of the type of labor on technical progress and its implementation in all types of production.
The activity of this law reflects the mobility of the employee’s functions and the need to change the type of work. The company, based on production requests and the interests of the administration, has the right to replace personnel in order to create a high-quality workforce. Consequently, this law manifests itself in the process of transition from one type of activity to another and implies that a person has the ability to make such a transition. Due to changes in work, the employee’s abilities and professional skills develop. Let us note that mastering several specialties not only expands the scope of a person’s work activity, but also causes an increase in his competitiveness in the labor market.
In the Russian market economy, there are three forms of functioning of the law of labor change:

• changing the type of work activity within the existing profession
• change of work type
• combination of main work with other types of work.

Changed structure Russian market labor and employment entailed a change in the nature of demand. In the context of a general sharp decline in labor mobility in the manufacturing industry at the dawn of the 1990s and a reduction in the employment of engineering and technical employees, labor market demands for financial and economic specialists, lawyers, managers, and trade workers increased.
In the world labor market in the context of globalization, there is a need for growing migration of labor resources, adaptation of people to the demands of national labor markets, the needs of employers and consumers.
The laws of supply and demand are the fundamental economic laws in a market economy. They express the action of two main market forces - supply and demand. The result of their interaction can be called “an agreement between the parties on the purchase and sale of goods and/or services in a specific quantity and at a specific cost.”

Economic categories

The main economic categories are actually theoretical expressions, mental forms of production relations, economic phenomena and processes that actually exist. We can say that they are also specific concepts in which the economic characteristics of objects, phenomena, and processes are expressed.
Such categories in theory reflect mainly property relations in their interaction with the development of the system of productive forces. Since the content of productive forces is the interaction of man with nature in the process of work, one side of the economic category is specific areas of such interaction. For example, these categories include:

• objects of labor
• ways of working
• consumer price
• product of labor.

On the other hand, the economic category is the relationship between people regarding the assignment of different objects of property and the results of labor. For example, money, price, cost, salary, profit, rent.
In addition, each economic law groups specific economic categories around itself, for example, the law of value is revealed using categories such as necessary work time, market value, price.
Based on the fact that economic categories are a theoretical expression of individual aspects of property relations in their interaction with the development of productive forces, the formation of new types of property is inextricably linked with the emergence of new economic categories.

developing or Third World countries(sometimes they are called agricultural, the basis of the economy is agriculture, the sale of minerals, that is, the raw materials industry is developed, etc.);

industrial (the basis of the economy of these states is industry);

post-industrial (these are modern developed states in which a scientific and technological revolution has occurred; the main wealth of these states is created in the service sector, in the industrial sector).

Depending on the form of government of the state

Monarchy, that is, the power of one person;

Republic:

• Oligarchy, that is, the power of a few;

  Polyarchy, that is, the rule of the majority; another name is liberal democracy.

Jamahiriya.

Depending on the dominant ideology of the state

ideologized;

de-ideologized.

De-ideologized (secular) states- There is no official ideology here. In ideologized states, the entire functioning of the state is determined by the dominant ideology. In particular, a person’s ability to participate in state activities, etc., depends on his views on state ideology. In deideologized states, ideological pluralism is proclaimed, that is, the opportunity to preach and develop any ideology. The state can prohibit extreme forms of ideology, such as racist ones.

Part two

Types of law

Type of law is a set of the most important features of law generated by a certain era. As in the theory of state, in the theory of law there are two approaches to typology: formational And civilizational.

With the formational approach, the most important factor determining the type of law is its class essence, that is, the interests of which class it serves. According to the Marxist theory of social development, each of the class socio-economic formations - slave, feudal, capitalist and socialist - corresponds to a certain historical type of law.

Historical type of law - this is a set of the most essential features characteristic of the legal system of a certain socio-economic formation. There are four historical types of law: slave, feudal, bourgeois, socialist.

Slave law

Slave law - it is the will of the slave-owning class elevated to law. The main objectives of slave law were: securing the private ownership of slave owners in the means of production and slaves, as well as protecting the foundations of the slave state system.

The legal history of the ancient world knows two main slaveholding state legal models: ancient Eastern and ancient. The first model was widespread in the territories of states that existed in the 4th millennium BC. - 1st floor 1st millennium AD on the Asian and African continents (Egypt, Babylonia, India, China, etc.), the second - in Ancient Greece and in Ancient Rome. The main difference between these models was that the ancient Eastern legal system was built on the predominance of the state over the individual, and the ancient one, on the contrary, on the freedom of the individual and its autonomy from the state. Such freedom was possible due to the widespread prevalence of private property in ancient states. It was private property that provided citizens with a certain independence from the state, while in the countries of the Ancient East property belonged to the state and was associated with position: in order to become an owner, it was necessary to occupy a certain place in the state hierarchy.

The difference between the two legal systems of slave law was not absolute, but relative. The ancient Eastern and ancient legal systems had more similarities than differences:

1) both systems legally established class-class inequality, that is, inequality not only between free and slaves, but also inequality between separate groups of free people;

2) both systems were closely related to religion. The concepts of sinful and criminal largely coincided, religious norms served as a source of legal norms, and clergy were often at the origins of justice;

3) the legal norms enshrined in most legislative monuments of both systems were records of specific cases from judicial practice - incidents, or instructions for judges, did not contain general rules of conduct and were of a casuistic nature. Crucial importance for legal actions was compliance with a certain form of their implementation;

4) both systems did not know the division of law into branches;

5) with the exception of Roman private law, all ancient law was characterized by a low level of legal technology: strict legal terminology was not developed, legislators used everyday language.

The pinnacle of slaveholding law was Roman law. It was divided into private and public. The classic distinction between public and private law was given by the Roman jurist Ulpian, who wrote: “Public law is that which relates to the position of the Roman state; private - which refers to the benefit of individuals.” Roman law was distinguished by the highest level of legal technology, precision of formulation, validity of decisions, specificity, practicality, and vitality. It reached its highest level of development in the regulation of property relations, primarily property relations. Even after the fall of the Roman Empire, Roman private law continued to exist, exerting a huge influence on the legislation of European countries (in particular, during the formation and development of bourgeois states), on legal thought and the legal history of mankind.

Feudal law

Feudal law represented the will of the dominant feudal class in the Middle Ages, elevated to law. Its main task was to legally formalize and regulate the property rights of feudal lords to land and other means of production, ensuring their political and economic dominance in medieval society. Feudal law was characterized by the following features:

1) the main place in feudal law was occupied by the norms regulating land relations, since it was land that represented the main wealth in the Middle Ages;

2) feudal law was a privileged right that consolidated the inequality of the various classes of medieval society. A person's social status was determined in accordance with the place he occupied in the feudal hierarchy. Each class had its own court; only the peasants were subject to the court of the master, since they were outside the feudal hierarchy. The investigative (inquisitorial) process dominated, built on a system of formal evidence, of which the confession of the accused himself was considered the most perfect evidence. Witness testimony was taken into account taking into account the social status of the witness;

3) feudal law is the right of the strong. It openly recognized violence as a source of law (primarily on the part of the feudal lord in relation to the peasant);

4) feudal law was inherent particularism, i.e., the absence of a unified system of law throughout the country. The law was fragmented; acts of individual feudal lords and local customs prevailed locally;

5) like the law of the ancient world, feudal law retained a close connection with religion;

6) feudal law did not know the division into branches of law. Its components were manorial law, city law, commercial law, canon law and royal law.

As commodity-money relations developed in feudal society, feudal law borrowed a number of institutions and norms of Roman law. This process was called the reception of Roman law. Beginning in the Middle Ages, it continued in modern times - the era of the formation of bourgeois relations.

Bourgeois law

Bourgeois law formed during the period of the XVII-XIX centuries. and represented the will of the bourgeois class elevated to law. In legal science today, this law is also called modern law, since in its main features it is still in effect to this day. Bourgeois law is characterized by:

1) secularism is a right that is not related to religion;

2) high legal technology and the creation of an extensive branch system of law;

3) division of law into private and public;

4) recognition of the law as the main source of law. The main tasks of bourgeois law are the protection of capitalist ownership of land and the preservation of the main means of production in the hands of the bourgeoisie.

Socialist law

According to Marxist theory socialist law represents at the first stage - the stage of formation and development of the socialist state - the will of the proletariat, peasants and working intelligentsia raised into law, and at the second stage - the stage of developed socialism - the will of the entire people raised into law. It is not eternal: having arisen together with the state as a class institution, socialist law will die out along with it. In reality, socialist law was declarative in nature and was subordinated to the state.

Currently, the formational approach to the typology of law is subject to serious criticism. The understanding of law solely as the will of a single, dominant class elevated to law is outdated. Modern legal science sees in law the state-established ideas of society about what is lawful and unlawful, permitted and prohibited. Law is not a tool of class domination, but a means of achieving social compromise. At the same time, the civilizational approach to the typology of law directs researchers to study the specifics of the law of each civilization. However, such a methodology does not allow us to identify common features and patterns of development of the legal development of mankind and model a unified classification. Therefore, modern legal science, studying the history of law, prefers such scientific categories as the legal system and the legal family to the concept of “type of law”.

Vocabulary lesson

Canon law - right of the Christian church. Manorial law - a set of legal norms that regulated relations in the feudal estate between peasants and feudal lords.

Formal proof system - a procedure in which the value of each piece of evidence is determined by law and depends on the social status and religion of the witness.

Question number 2 part two

Current budget expenditures- part of budget expenditures that ensures the current functioning of government bodies, local governments, budgetary institutions, provision of state support other budgets and individual sectors of the economy in the form of subsidies, subsidies and subventions for current functioning. Current expenses include expenses such as wages, purchase of services, transportation services, and utilities.

Capital expenditure budgets- part of budget expenditures that ensures innovation and investment activities, including expenditure items intended for investments in existing or newly created legal entities in accordance with the approved investment program, funds provided as budget loans to legal entities, expenses for major (rehabilitation) repairs and other expenses associated with expanded reproduction, expenses during the implementation of which property owned by the Russian Federation, its constituent entities, and municipalities is created or increased. Capital expenditures include capital construction, major renovation, acquisition of equipment, durable inventory and land.

The current budget legislation excludes budget loans from budget expenditures, but in theory they adhere to the above classification and include budget loans as part of capital budget expenditures.

The volume of expenditures of the corresponding budget is determined and approved item by item. Budget funds are allocated to specific recipients of budget funds with the designation of their direction to finance specific goals.

Among the capital expenditures of the budgets the following are highlighted:

Expenses intended for investment in capital construction projects of state and municipal property;

Funds provided as budget loans to legal entities.

Budget expenditures are divided on a territorial basis in accordance with the budgetary structure of the Russian Federation.

Formation of budget expenses budget system RF is carried out in accordance with expenditure obligations stipulated by the division of powers established by the legislation of the Russian Federation of federal government bodies, government bodies of the constituent entities of the Federation and local governments.

According to Art. 6 of the Budget Code of the Russian Federation, expenditure obligations are the obligations of a public legal entity (the Russian Federation, its subject, a municipal entity) or acting on its behalf, stipulated by law, other regulatory legal act, contract or agreement budgetary institution provide to an individual or legal entity, another public legal entity, a subject of international law, funds from one or another budget.

The law (decision) on the budget for the next financial year and planning period creates appropriate financial conditions for the implementation of norms established in other regulations, issued before its adoption and providing for the expenditure obligations of a public legal entity, i.e. implying the provision of any funds and material guarantees, and necessitates expenses.

Budget system of the Russian Federation.

Budget system Russian Federation - based on economic relations and the state structure of the Russian Federation, regulated by the legislation of the Russian Federation, the totality of the federal budget, budgets of the constituent entities of the Russian Federation, local budgets and budgets of state extra-budgetary funds;

Thus, the budget system of the Russian Federation includes budgets of three levels:

First level– federal budget and budgets of state extra-budgetary funds of the Russian Federation

Second level- Budgets of constituent entities of the Russian Federation and budgets of territorial state extra-budgetary funds

Third level– budgets of municipalities

The budget is a form of formation and expenditure of the fund Money, intended to financially support the tasks and functions of the state and local government. Regional budgets provide tasks and functions that are within the jurisdiction of the constituent entities of the Russian Federation, local budgets are within the jurisdiction of local self-government.

State extra-budgetary fund- a fund of funds formed outside the federal budget and the budgets of the constituent entities of the Russian Federation and intended for the implementation of the constitutional rights of citizens to pension provision, social insurance, social security in case of unemployment, health care and medical assistance.

Federal budget and budgets of state extra-budgetary funds of the Russian Federation

The federal budget and the budgets of state extra-budgetary funds of the Russian Federation are intended to fulfill the expenditure obligations of the Russian Federation.

Budget of a constituent entity of the Russian Federation and budget of a territorial state extra-budgetary fund

Each subject of the Russian Federation has its own budget and the budget of a territorial state extra-budgetary fund.

The budget of a constituent entity of the Russian Federation (regional budget) and the budget of a territorial state extra-budgetary fund are intended to fulfill the expenditure obligations of a constituent entity of the Russian Federation.

The budgets of the constituent entities of the Russian Federation separately provide for funds allocated for the fulfillment of expenditure obligations of the constituent entities of the Russian Federation arising in connection with:

a) with the exercise by government bodies of the constituent entities of the Russian Federation of powers on subjects of jurisdiction of the constituent entities of the Russian Federation

b) powers on subjects of joint jurisdiction in accordance with 184-FZ "On general principles organizations of legislative (representative) and executive bodies of state power of the constituent entities of the Russian Federation"

c) expenditure obligations of the constituent entities of the Russian Federation carried out at the expense of subventions from the federal budget.

Local budget

Each municipality has its own budget.

The budget of a municipal entity (local budget) is intended to fulfill the expenditure obligations of the municipal entity.

Local budgets separately provide for funds allocated to fulfill the expenditure obligations of municipalities arising in connection with:

a) with the exercise by local self-government bodies of powers on issues of local importance

b) expenditure obligations of municipalities, fulfilled at the expense of subventions from other budgets of the budget system of the Russian Federation for the implementation of certain state powers.

Local budgets currently number more than 100 thousand.

The budgets included in the budget system of the Russian Federation are independent and are not included in each other, i.e. budgets of constituent entities of the Russian Federation are not included in the federal budget, and local budgets are not included in regional budgets.

Federal budget and set of consolidated budgets of the constituent entities of the Russian Federation(without taking into account interbudgetary transfers between these budgets) form the consolidated budget of the Russian Federation (a set of budgets of all levels of the budget system of the Russian Federation).

Budget of a constituent entity of the Russian Federation and set of budgets of municipalities, included in the constituent entity of the Russian Federation (without taking into account interbudgetary transfers between these budgets), form the consolidated budget of the constituent entity of the Russian Federation.

Budget of a municipal district (district budget) and a set of budgets of urban and rural settlements, included in the municipal district (without taking into account interbudgetary transfers between these budgets), form the consolidated budget of the municipal district.

Consolidated budgets of the Russian Federation and its constituent entities RF are not considered or approved by legislative authorities. They perform the function of combining the territory’s budget indicators. First of all, consolidated budgets are a statistical set of budget indicators that characterize aggregated data on income and expenses, sources of funds and areas of their use for the territory of the Russian Federation as a whole and individual constituent entities of the Russian Federation

Depending on the duration, cycles in the economy are divided into short, medium and long (long).

Short cycles are called Kitchin cycles, after the English economist and statistician Joseph Kitchin. He explained the small cycles by the periodicity of fluctuations in gold reserves and determined their recurrence with a periodicity of three years and four months.

The founder of econometrics, Wesley Mitchell, saw the reason for small cycles in the sphere of monetary circulation and determined their duration at 40 months, that is, also three years and four months.

Small (short) cycles are associated with disruption and restoration of equilibrium in the consumer market.

The reason for the short cycles is the changes taking place in the credit industry. That is why they manifest themselves as credit crises.

Average cycles also called Clement Juglar cycles (named after the French economist who studied middle cycles in the second half of the 19th century). He believed that the reason for average cycles also lies in the field of credit, and determined their frequency at 8-10 years. This periodicity coincides with the duration of average cycles, the reason for which scientists saw in the same frequency of renewal of fixed capital.

The middle cycles include the so-called construction Simon Kuznets cycles(named after the American scientist, Nobel Prize winner). He believed that cyclical fluctuations were associated with the periodic renewal of housing and certain types of industrial structures and determined their duration (frequency) at 15-20 years.

The existence of long waves (long cycles) is associated with changes in basic technologies, energy sources and infrastructure. They are also called Kondratiev cycles (in honor of the Russian scientist Nikolai Kondratiev). His research was based on statistical data on the dynamics of production of iron, lead, coal, as well as the average price level, wages and interest rates, foreign trade turnover and other indicators in England, France, Germany and the USA for the period from the 80s of the 18th century. until the 20s of the XX century. Based on economic analysis, he identified two and a half long waves with a duration of 54-55 years with an ascending and descending phase.

Descending phase of the major cycle is a period of change in basic technologies and technological structures, lasting 20-25 years. During this phase, small and medium cycles occur, which creates the basis for the most significant changes in technical re-equipment.

Rising phase of the major cycle- this is a period of growth in the economic, scientific and technical development of society, lasting 25-30 years, during which cyclical fluctuations associated with the renewal of fixed capital, the massive spread of new technologies, the emergence and development of new sectors of the economy are also possible.

Let's take a closer look at the average cycles, which are also called industrial cycles.

Industrial (economic) the cycle is the most acute form of manifestation of the contradictions inherent in a market (capitalist) economy and at the same time very tough, but in an effective way their permissions.

The material basis of the industrial cycle, in accordance with Marxist theory, is the periodic renewal of fixed capital.

The frequency of cycles is thus determined by the time of renewal of fixed capital. The faster this renewal is carried out, the more often crises occur. At the time described by K. Marx, the frequency of renewal of fixed capital was 10-11 years. This was also the periodicity of the average (industrial) cycles.

The classic business cycle diagram includes four phases (Fig. 16.1).

Let's give brief description each phase of the business cycle.

Features of the economic crisis:

• - overproduction of goods in relation to effective demand for them;
• - significant reduction in production volumes;
• - falling prices;
• - shortage of available funds necessary to make payments;
• - stock market crash and bankruptcy of enterprises;
• - increase in unemployment rate;
• - reduction in wages;
• - drop in profit level;
• - mass destruction of consumer goods, equipment, etc.;
• - disorder of the credit system.

Traits of depression:

• - “stagnation” of production;
• - low price level;
• - “sluggish” trade;
• - low interest rate;
• - liquidation of surplus goods.

Revival Traits:

• - expansion of production until the pre-crisis level is restored;
• - rising prices;
• - increasing the rate of profit;
• - increasing employment levels;
• - revival of trade;
• - strengthening of optimistic expectations.

Lifting features:

• - exceeding the maximum production volume of the pre-crisis level;
• - rapid growth in employment;
• - growth in wages and other types of income;
• - credit expansion;
• - artificial stimulation of aggregate demand, caused by intermediaries’ expectations of rising prices and their desire to buy more goods at lower prices;
• - an increase in supply, which will eventually exceed demand and create conditions for the next crisis.

With the acceleration of scientific and technical progress and increased state (governmental) intervention in the economic life of society, the industrial cycle is modified (Fig. 16.2).

Modern economic theory distinguishes two phases of the economic (industrial) cycle:

• - recession, including crisis and depression;
• - climb, including revival and boom.

Recession- this is a phase of the economic (business) cycle, characterized by a relatively moderate, non-critical decline in production or a slowdown in economic growth. It is located between the top and bottom points.

Rise (expansion) of production- the phase located between the bottom (lowest point) and boom (highest point of the cycle).

According to the US National Bureau of Economic Research (NBER), a recession is a period of decline in the level of aggregate output, income, employment, and trade, lasting from six months to one year and characterized by a significant decline in many sectors of the economy.

American scientists Arthur Burns and Wesley Mitchell, studying the cyclical fluctuations of the modern economy, came to the conclusion that the dynamics of the output and employment series determines economic growth, called an increasing trend, and fluctuations in business activity around the trend form industrial cycles.

Thus, a trend can be considered as a result of the action of factors that determine long-term economic growth (savings level, increase in labor resources, technical changes, etc.), and a cycle can be considered as a temporary deviation from this trend.

Economic cycle (Business cycle, or business cycle)- these are regular fluctuations in the level of business activity (usually represented by fluctuations in national income), in which, after an increase in business activity, it decreases, after which its increase is observed again.

Modern economic cycles differ significantly from the cycles of the late 19th - first half of the 20th centuries.

• 1. They do not have a depression phase as obligatory, but if the fall is very deep and long-lasting, then the recession phase is called depression.
• 2. There is no clear boundary between revival and recovery. These phases are combined into one. This is called the expansion phase of production. There are top (boom) and bottom (bottom) points of the business cycle.
• 3. The resultant of long-term economic growth is determined - a trend, fluctuations around which form a cycle.
• 4. Economic indicators in the phases of the cycle have also changed.