Economic growth and development - closely interacting categories

Economic growth and development are two categories that closely interact with each other. Economic growth, for example, is a dramatic upturn.

economic growth and development
In the process of social productionthere are periods during which general economic growth and development occur quickly enough or, on the contrary, they slow down somewhat, and sometimes even their decline occurs. With a certain regularity of repetitions in the changes in the social production of such oscillations over a certain period of time, development occurs with a cyclic character. The interval of a certain cycle (known as the single cycle) reflects fluctuations in the economy of the state from one crisis to another.

Economic growth and cyclical developmentshow constant fluctuations of the market economy, in which production volumes then increase, then fall. And business activity related to this indicator of the economy also tends to increase or decrease. Cyclicality in itself implies periodic ups and downs of the market situation. At the same time, the period of increasing activity characterizes predominantly extensive economic growth and development, while a decrease in business activity is the beginning of intensive development. Thus, the cycle reflects the constant dynamism of a market economy.

economic growth and cyclical development
The relationship between economic growth and economicdevelopment is very clearly illustrated in the "big waves" Kondratieff. This academician has proved that any economy experiences certain fluctuations, which entail ups and downs. Their length lasts up to 50 years. The theory of economic cycles also does not deny the existence of "small waves", which refers to the consideration of recessions and growth of business activity, but only in specific industries. The periodicity of such cycles is only five years.

Economic growth and development in closeinterconnections are explained by the objectivity of cyclical economic fluctuations. Understanding their development will allow them to adapt to recessions in the economy, which will significantly reduce the negative impact of factors arising from the economic development of the state.

interrelation of economic growth and economic development
And one such factor, which has a significantinfluence on the stability of the economy, is the growth of the population. Thus, an increase in the share of the population with a simultaneous effect of capital retirement due to a decrease in the capital-labor ratio can only operate in one direction. By reducing the level of stocks, the amount of capital decreases, and with the growth of population, capital also has a negative tendency among the increased number of employees.

To maintain sustainability in the economy,to provide compensation for the negative impact of capital outflow and a sharp increase in the population's required investment. It is this economic state with the gradual growth of the population contributes to the immutability of both capital and output per employee.