or having determined growth of GNP per capita. But such calculation does not give a complete idea of the growth of the country, because economic growth — this not only quantitative change of output, but also a of a product and factors of production.
Recession is followed by the period of a depression (stagnation) which by a stagnant condition of market economy, demand for consumer goods and services, considerable loading of the enterprises, mass unemployment, decrease the population lives. During this period there is an adaptation of economy to new conditions and requirements of economy.
Eras of the increased economic activity represent the periods on which extent development of technology and opening of new resources create a favorable basis for growth, and, first of all, for growth of investments. During such periods technical progress it is much more accelerated in comparison with that it would be possible to expect at usual action of numerous inventions, each of which has rather small value. During the long periods of expansion becomes effective new, it is possible to tell revolutionary equipment which deeply changes character of all economy. This equipment, creates a basis for huge increase in mass of the capital benefits and growth of investments.
Prosperity according to Shpitgof, begins when new inventions open new opportunities for investments into fixed capital. In order that businessmen made large investments, motivation is required, and without it production of fixed capital in wide scales will not take place. Large innovations involve creations of the new enterprises and the new equipment. Prosperity does not arise only as result of inventions or opening. It is result of practical expansion of innovations which are a driving force of the period of prosperity.
From told clearly that crisis serves as a mass push for updating of fixed capital in small and to introduction of basic innovations in big cycles. However conditions for cyclic fluctuations create capital investments not in itself. The motive of investment activity which is objectively put in socioeconomic system is important. It in normally operating market economy is sufficient profitability of private business. If it is provided, there is an economic basis for distribution of results of technical progress. The rate of return acts, on the one hand, as a production efficiency indicator, with another – its incentive and the regulator. Decrease in profit reflects falling of efficiency before
The history of development of human society visually that the market economy is capable to create bigger quantity of goods and services for bigger number of people, than any other economic system. Also it is explained by that in the conditions of market economy the high motivation to creative activity is provided, to progress, people make the choice, than to be engaged. Thus arises high risk and responsibility in economic activity that develops an initiative, enterprise and conducts to high of development of a social production.
On graphics on a horizontal axis time (t), down — output (Q) is postponed. The increasing direct OA testifies to continuous economic growth and development of market economy in general.
According to Shumpeter "innovations can gush a tidal wave and then to recede. The business cycle is reduced to outflow and inflow of innovations and to those consequences which follow from here."
Crisis, thus, finishes the period of a turn of the majority of the individual capitals and gives rise to a new turnover cycle. It is carried out not only replacement, but also updating of the axis capital. The obsolescence of equipment and dynamics of scientific and technical progress are that that do this updating nonsynchronous in relation to scales of all economy. Additional unevenness is given to mass updating of fixed capital by variability of a konjyuktura. Therefore real cyclic process appears as the difficult phenomenon caused by the factors connected between themselves – a turn of fixed capital, scientific and technical progress, dynamics of an environment. Respectively for understanding of this cycle all these factors in their concrete values and dynamics also have to be studied.