Mathematical Demoeconomy

13 Fluctuations in models of spatial economics

Long-term observations of real economic processes testify that equilibrium states of the latter have short duration. As a rule, they herald a soon downturn or upturn inin economic activity (in the wide sense). National income, employment and production decrease, leading to prices growth; accordingly, smaller profits increase unemployment. “The lowest point” of the downturn is achieved, and gradually economic revival picks up the baton. Economic recovery may be slow or fast. A new period of exuberance possibly means the continuous state of raising active demand, growing number of work places, increasing prices and improving of living standards. The above picture of an “economic cycle” drawn by P. ...