Gross national product

click fraud protection

Gross domestic product is an aggregate amount of final goods and services produced within a year.It is expressed in money.

defining the gross national product, should pay attention to the individual components of this definition.Thus, in the first component is a finite set of products and services.Thus, it is the presence and "intermediate" and "nonleaf" products, which are not taken into account.The final product is one that is purchased for final use.The intermediate is called the one that is purchased for resale or processing.In this regard, the gross national product is calculated using the final product.

Along with this figure is not included in the cost of goods produced within the household domestic economy in the shadow economy (despite the fact that is made to implement).

Gross domestic product is calculated in value terms.As an accurate indicator of the dynamics of economic development, natural real form can not act.For example, during the year it produced three tables and five suits.The cost of the table - forty dollars and a suit - twenty.And next year was made five tables and three suits.If you expect real GDP in natural form, it will be the same for both years and equal to eight units.In the calculation of cash in the second year rate will be higher than in the first.

should be noted that GDP represents only a general idea about the dynamics of the economy, the economic condition of the state as a whole.It is possible to compare the potential of different countries.You can determine the well-being when compared with the number of living index citizens.Thus, the calculated per capita income.

The indicator can be carried out, summarizing all the costs suffered by consumers in the final process of acquiring goods and services in a given year.This method is called the expectation of "spending" or "production".

Definition of the indicator can be carried out, summarizing all income received by producers of goods and services in a given year.

With precise calculation of gross national product the same result must be obtained in connection with the fact that what is spent on the purchase of goods or services are profits of manufacturers.

In accordance with the rate of growth is estimated dynamics of economic development.For example, if it has increased by five percent, so as to increase the amount of produced goods in the society.The more goods and services, the higher, respectively, of GDP.

However, it should be noted that the rate increase may not always indicate increase of output volume.Situations in which the value has been an increase in the magnitude of decrease in volumes, are not uncommon in the economy.The calculation of GDP implemented in the form of value.She, in turn, depends directly on the level of emerging price.A situation in which the growth rate, despite the decrease in production volume, can take place, provided the rates are increasing faster than the manufacture of goods occurs.

In calculating the gross domestic product at current prices might get the wrong idea about the economic status and living standards in the country.To picture the production of the dynamics become clearer in defining the indicator should exclude the impact of inflation.In this regard, expect nominal and real GDP.Rated involves defining figure in the prices, which are formed at the moment.The calculation is performed in real GNP in constant prices.