Listening to the speech of politicians or economic reading articles on the causes endless problems of our country, we often hear about such indicators as gross domestic product.This, as the economists say, the status of the economy, which is only slightly inferior to the accuracy of the gross domestic product (GDP).Interestingly, even 20-25 years ago, the gross national product (GNP) was considered the most important indicator that shows at what phase of the cycle is given the economy, so you definitely can not hurt to know him better.
Gross Domestic Product - is the monetary value of the entire set of products released for a year in that country.In contrast to the gross domestic product, he does not consider what she was released: residents or non-residents.Gross domestic product - a measure, which includes not only manufactured goods but also services rendered and the work performed.It is important to understand that only the final product is taken into account, the cost of which is expressed in current prices of the market.This is done in order to avoid re-conversion, as well as confusion.
Gross Domestic Product - is a macroeconomic indicator, which directly affects the exchange rate of the country.And there is a logical explanation.Just imagine that the GNP of the State under review increased.What does this mean?Firstly, probably in the state increased industrial production, which is associated with either an increase in its effectiveness or its extension.Secondly, most likely, foreign investment also increased.Third, the rate of exports has become more.All of these factors lead to an increase in demand for the national currency.And can the "goods" for which demand is constantly growing, to be cheap?The national currency becomes stronger.But what would happen if the gross domestic product will grow steadily for several years?
turns out that in this case we are faced with a term such as inflation.To prevent the devaluation of the national currency, the state will have to raise interest rates, which will reduce the amount of money in circulation.
It is also important to understand that the EP is real and nominal.The actual price is calculated in the period, which was chosen base to provide a truly realistic picture of whether the growing prosperity of the country, or just a worthless money.
calculation of gross domestic product can be carried out using various methods.According to economists, it can be done in three main ways.Firstly, you can add up all the income for the year.The amount of salaries, interest, rental payments, depreciation and indirect taxes is taken into account in the method of calculation of GNP income.Secondly, we can calculate how much money you will need to purchase the entire issued for the year of production.Third, GDP can be calculated from the value added produced.Some economists believe that the latter is just the most reliable.
