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

To be used rather loosely — использоваться довольно произвольно

To sustain — поддерживать, сохранять, удерживать

Optimal-growth theory — теория оптимального роста

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