GDP – one of key indicators of macroeconomic. It is used as one of elements of the System of National Accounts in the analysis of economic opportunities of the country on satisfaction of material needs of the population.
Instruction
1. The Gross Domestic Product (GDP) is economic characteristic of the output of the goods and services released in the country for last year. This indicator is quantitatively equal the market value of set of the goods and services made in the country and directed to satisfaction of material needs of her citizens.
2. GDP differs from GNP (gross national product) in the fact that shows only level of production in country scales, excepting the exported goods.
3. GDP joins only the cost of final goods, i.e. products which will not be exposed to further processing or resale. It becomes not to allow double accounting of the same products, for example, of the car and parts of which it consists, or bread and torments which enters its compounding.
4. The market value of set of goods and services means commission of official financial transactions, i.e. on these goods the registered purchase and sale was made. GDP is measured in terms of money.
5. There are three ways of calculation of GDP: on expenses, on income and on added value. The method of calculation for expenses means summation of expenses of the population on consumption of products, costs of the enterprises of its production (purchase of machines, raw materials, tenancy, etc.), the state costs of goods and services and expenses on net export.
6. By a method of calculation for income of GDP it is equal to the sum of sizes of the salary, rent contributions, payments on percent, revenues of the enterprises, cost of depreciation costs, the amount of indirect taxes (i.e. taxes minus subsidies) and so forth. There is an interrelation between GDP and GNP by this method of calculation. GDP joins the income of citizens only in the territory of the state, and in GNP – all income of citizens, considering foreign. Thus, if GNP exceeds GDP, then the foreign income of residents of this state exceeds the income of foreigners in this country.
7. The method of calculation of GDP for added value means accounting only of the value added of goods and services. In this case GDP is equal to the sum of profits of producing companies minus expenses on production of products.