5. Я с вами согласен. Очевидно, это самое сложное в смысле

с о с т а в лIенt иsя tпaроnгdноsзо вt .o Я rпeолaагsаoюn, в ыt hзнaаеtт еs, uчтcо kпр и

216

15.7.1.1.Read the text “Dynamics Analysis in th.Pen.L m1vt7oDe5e ,il)seagydnu tsceromtc .I(fje157agbdnRmkue1 Market Situation Survey” and translate it in

witten form or orally.

Dynamics Analysis in the Market Situation Survey

In the market situation survey, particular attention is given to the analysis of its dynamics.

It is the analysis which aims to trace and study the behaviour of variables through time and determine

whether these variables tend to move towards equilibrium. Although the word “dynamic” is

used rather loosely, it safely describes any analysis which gives an account of the process by which

equilibrium is achieved, or disequilibrium sustained. An example of dynamic analysis is optimalgrowth

theory, which traces the path an economy should follow to maximize the present value of

consumption over time. In contrast to comparative static equilibrium analysis, dynamics does not

just specify the conditions that prevail when the economy is in equilibrium, or whether it is in a

satisfactory equilibrium or unsatisfactory one. It traces the optimal path towards an equilibrium.

Commentary and Notes to Text 15.7.1.1

1. To be used rather loosely — использоваться довольно произвольно

2. to sustain — поддерживать, сохранять, удерживать

3. optimal-growth theory — теория оптимального роста

4. comparative static equilibrium analysis — сравнительный анализ статического равновесия

15.7.1.2. Read the text “Trend Growth is One of the Rates in the Market Situation Survey” and

m ake a synopsis of it.

Trend Growth is One o f the Rates in the Market Situation Survey

One of the main factors in determining the market situation is the setting of trend growth.

By trend growth we mean the level of economic growth of an economy that is sustainable over

die long term, without any tendency for the rate of inflation to rise or fall. It is sometimes held to

be the rate at which the productive capacity of the economy — its potential for production —

expands. It could equally be taken as a measure of the growth of the supply side. It is also interpreted

as the long-term growth rate, as it assumed that in the long term the economy must perform

according to its potential. The rate is affected by growth in the labour force, and the growth in

productivity, itself primarily determined by technology and social institutions. Actual growth in

any year may exceed, or underperform trend growth, usually because fluctuations in aggregate

demand affect actual gross domestic product more than they affect the long-term capacity of the

economy to produce things.

Trend growth is a useful benchmark for whether the economy is growing too quickly (overheating)

or too slowly. In the UK budget in 1997 the trend growth rate was officially declared to be “between

2 And 2.75 per cent.” That is a number close to the long-term average growth rate. A similar estimate

is regarded as reasonable for most highly developed economies, but it recognized that developing

countries may outperform this level for a sustained period of catch-up. Trend growth is a concept

more often used by policy-makers, than theoretical economists. It has largely been ignored by the

different theories of growth, and should not be confused with the natural rate of growth.

Commentary and Notes to Text 15.7.1.2

1. a measure of the growth — мера роста

2. actual growth — действительный (фактический) рост

3. underperform — недовыполнять (не достигать)

4. benchmark — показатель

5. overheating — перегрев (экономики)

6. a similar estimate — подобная, аналогичная оценка

7. to outperform this level — превысить этот уровень

8. the natural rate of growth — естественный показатель роста

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15.7.1.3. Read the text “Economic Efficiency” and describe the example of the marginal rate of

substitution given in the text and give you own example.

Econom( !i)c Efficiency

By economic efficiency in the market situation survey we mean the state of an economy in which

no one can be made better off without someone being made worse off. For this to be the case, three

types of efficiency must hold. The first is productive efficiency, in which the output of the economy

is being produced at the lowest cost. The second is allocative efficiency, in which resources are being

allocated to the production of the goods and services the society most values. The third is distributional

efficiency, in which output is distributed in such a way that consumers would not wish, given

their disposable income and market prices, to spend these incomes in any different way.

In a two-person, two-product economy with two factors of production, these three types of

efficiency are achieved when three conditions hold: productive efficiency demands that the rate of

technical substitution for the two products must be equal, to ensure a unit of one factor of production