The article discusses how technical progress affects economic growth and business cycles. It presents a model with two sectors - one for consumer goods and one for capital goods - and analyzes how different types of technical progress impact the economy. The researchers explore stabilization policies to address unstable growth paths, including the role of the government in balancing the budget and implementing anti-inflationary or expansionary policies. The study also looks at the dynamics of an open economy, particularly the industrialization process in developing countries. Overall, the research highlights the complex interactions between technical progress, economic fluctuations, and policy interventions in shaping the economy.