Question
Explain the types of dynamic economic changes occurs in economy.
✓
Answer
- Introduction:
- Economic activities go through phases of dynamic changes like human life.
- It creates very high Dynamic uncertainties in economy.
- There are four types of disparities and rigging in economy.
- Types of Dynamic economic changes :
- Irregular Changes:
- In economics whatever changes took place due to accidentally is called Irregular changes.
- E.g. Cyclone, flood, drought or any other natural calamities create irregular economic changes.
- It is so much difficult to control it.
- This type of irregular Changes are also affect only one part of area of economics.
- E.g. In India it is possible that the flood are coming in particular city then it effects only that city.
- In economics that types of Irregular changes creates high level of long term effect.
- Seasonal Changes :
- In economic changes occurred due to season and creates changes in demand an so that production and employment also changes.
- E.g. In winter warm clothes are in demand so it creates more employment also connected with that type of production work.
- In economics according to winter, summer and monsoon the change are done.
- This type of changes are arise at regular time interval and cyclical.
- So the reason to find out is very easy.
- Long Run Regular Changes :
- In economy, the process of changes for longer period in any fixed direction exist then it is called long run regular changes.
- In economics the changes done for long time duration is called long run regular changes.
- This type of changes are long term but not cyclical.
- E.g. Free economy trade is long run regular changes but not cyclical.
- It is very much slow changes so no need to find out reason of it.
- It can be known only.
- Cyclical Changes:
- During a fixed time period, the upper and lower economic trends arise and which is cyclical then it is called cyclical changes.
- In a particular time, the inflation and recession are create cyclical changes.
- This types of changes are uncertain but easily find out.
- Some times it is fix but then also it creates big changes in economy.
- In capitalist country it creates big changes.
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