Page 13 - Azerbaijan State University of Economics

N.Akimov., S.Baizakov., A. Oinarov., E.Utembayev: The analysis of the macroeconomic
dynamics and assessment of smart factors’ inputs to the balanced growth rates

As an example, the above concept ignored the possibility of comparing the
current year labor productivity with that of the previous. It happens because the
indicators are impacted not only by changes in prices on goods and services but also
inflation. It means that the entrepreneurial profit (entailing from John B. Clark‘s
concept) may turn out to be the effect of inflation of ‗purchasing power of money‘ or
the increases in prices for goods and services.
Thus, it is impossible to assess the true origin of the prime sources of the
incremental profit because its concept did not account for the possibility of changing
the organic structure of the capital. The latter largely undergoes certain changes
under the conditions of market competition.
Besides, money circulation has not also been taken into account; neither has
been the turnover of goods and services. The socio-economic consequences of the
above measurement have not been studied. No analysis of simple and expanded
production cycles has been done.
Further in time, the detailed study of the organic structure of capital in
macroeconomic dynamics has been carried out by V. I. Lenin. He analyzed the
expanded reproduction schemes (as developed by Karl Marx) and paid due account
to the science and technology progress.‖ [Consolidation of Lenin‘s Theories, 1975] .
Opportunities. Nevertheless, the theoretical conclusions, developed by John B.
Clark, on the just and fair economic laws and the two principles relating to the analyses
and assessment of the impact of regulatory policies on social economy are of great
importance. These principles, especially, regarding the interpretation of functional
features of the social progress may well be effective for analyzing the macroeconomic
dynamics, using the two dimensions.
First, the above said is being reasoned by the fact that John B. Clark revealed
the theory of income distribution based on one-dimensional marginal utility theory.
The latter theory may be replaced by the dual measuring of costs, labor outputs, and
capital (sufficiently justified in Karl Marx‘ reproduction schemes.)
Consequently, John B. Clark‘s concept of marginal production enables to
reveal the core essence of marginal utility as the theory of macroeconomic analysis
in statics, and the labor cost theory of Karl Marx as the theory of analysis of
macroeconomic dynamics.
Second, he explained, in detail, the marginal utility theory and introduced the
sum of marginal utilities and the methods of their application are: the ―cluster of
elementary utilities‖. It means that John B. Clark clearly understood the
interconnection that lies between the annual income, as the sum of marginal utilities,
and the cost of production, as the ‗cluster of elementary utilities‘.

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