Written by
The student of UZ-92
Osipov Dmitry
Checked by
Ereshko Yu. A.
Kiev-2010
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Contents
busines economic cycle
Introduction
Definition of Cyclicity
Stages of the Business Cycles
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Recession
Through
Recovery
Peak
Causes of Economic Cycles
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Types and Continuity of the Business Cycles
Short Cycles
Middle Term Cycles
Long Cycles (The Kondratiev wave)
Stabilizing policy of the State
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The Great Depression
The List of Used Literature
Introduction
The modern society strives to continuously improve the level of life and living conditions, which can only provide sustainable economic growth.However, long-term economic growth is not even, but is constantly being interrupted by periods of the economic instability.The ups and downs along the level of output, following one another, are commonly called the business or economic cycles.
We can meet cycles, including economic ones, almost everywhere.Our life, the career develops cyclically - we always feel expansions, recessions. The topic is relevant because we all have to understand that once we hit the pick, it’s going to be followed by the recession.
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Definition of Cyclicity
The economy has the ability to develop cyclically: it has its own crises, recoveries, "booms". People always strive to reach the peak, the "boom" of their welfare; the government - to the peak of economic development of the state.But the economy can’t stay at the peak of its development forever, it’s always followed by the recession, crisis.Under these two words we all understand something bad, something we want quickly to get rid of.Crises have a negative impact on almost everything, so we try to avoid it.But even in the developed countries like USA, UK, France, Germany and other countries of Western Europe we don’t see the successful experience of avoiding them.
Scientists have not determined the exact causes of the cycles for several centuries. Currently, there are only theories of economic cycles. The other economists agree with them or offer brand new ideas on the problem .However, this question remains open to this day.
Economic cycle (or the business cycle) – is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations inreal GDP and other macroeconomic variables.