Unit 4. National-income accounting
Active Vocabulary
national-income accounting облік національного доходу
gross national product (GNP) валовий національний
продукт (ВНП)
GNP per capita валовий національний
продукт у розрахунку на
душу населення
intermediate goods проміжний продукт
nominal GNP номінальний валовий
національний продукт
real GNP реальний валовий
національний продукт
production possibilities можливості виробництва
depreciation амортизація
net national product (NNP) чистий національний
продукт
gross investment валові капіталовкладення
net investment чисті інвестиції
exports експортовані товари
imports імпортовані товари
National-income accounting is the measurement of aggregate economic activity, particularly national income and its components. The measurement of aggregate economic activity by national-income accounting serves two basic functions. First, it enables us to identify economic problems. The second function of national-income accounting is to provide an objective basis for evaluating policy.
National-income accounts help us not only to measure the economy but also to understand how it functions.
Gross national product (GNP) is the total market value of all final goods and services produced in a given time period.
GNP per capita is total population: average GNP, GNP per capita relates the total value of annual output to the number of people who share that output; it refers to the average GHP per person.
Even when we focus on domestic market activity we encounter problems in calculating GNP. A very basic problem arises from the fact the production of output typically involves a series of distinct stages. Consider the production of bread, for example. For bread to reach the supermarket, the farmer must grow some wheat, the miller must convert it to flour, and the baker must make bread with it.
We must focus on the value of final goods and services and exclude intermediate goods from our calculation.