National Economy - it has developed in the course of historical development of the system of reproduction in the whole country, which is a set of interrelated industries and industries with belonging to a particular state.
From the perspective of macroeconomic theory the national economy includes four macro subject: households, business sector, the public sector and the sector abroad.
household sector forms the factors of production, which are in private ownership, income from the sale of these factors are used for consumption and savings.This sector seeks to maximize consumption and lowest cost him.
business sector, which is a group of private firms of the country, in which there is a demand for factors of production, forms the supply of goods and services, investment produces.This sector in the activity aims to get the maximum business profits.
public sector aims to create public goods (security, science, infrastructure services).It also seeks to make a profit and create conditions for the best performance of the economy.
sector abroad - a combination of foreign government institutions and entities beyond the borders of the country.His condition is indicative of the balance of payments and exchange rate.
All business sectors are in communication.In a market of factors of production from households accounted for factors of production (land, capital, entrepreneurship, labor).Then, through the market benefits to households from the business sector receives the material, as well as the intangible benefits.Movement of all real flows of resources and finished products at the same time accompanied by moving towards them cash flows.
government economy involves the direct participation of the state in all these processes.It accumulates taxes from households and firms, while providing them transfers and subsidies.
national economy is often understood as the country's economy.It is inextricably linked and act in unity sharing, production, distribution, consumption of services, benefits and values.
The national economy is the product of society.Signs of the national economy are: a common economic space;unified laws, currency, common monetary and financial system;close ties between economic entities with the general reproductive circuit;territorial certainty of a single economic center, which is given execution of regulating and coordinating role.
Each entity of the national economy has its own economic interests.Their coordination is carried out by the operation of objective economic laws.
national economy tends to efficiency, stability and justice through important measures, such as ensuring the growth of national output, the desire for the existence of maximum employment, stable prices and maintaining a balanced external balance, which provides state management in the sphere of economy.In this direction, state agencies operate through the use of various tools of macroeconomic management: fiscal, monetary, foreign trade policy and regulation of income.
main objective of the national economy - the increase of national economic wealth, the most efficient use of limited resources, the increase in profitability of production of goods and services.
