The end product is. intermediate product. GDP value added

We refer to final goods and services as those intended for final consumption. Intermediate products are those products that are intended for further processing or resale. Here are some examples of final and intermediate products. Bread can be both final and intermediate, meat, milk, both final and intermediate products.

GDP - gross domestic product, measures the value of the final product produced in the territory of a given country using both domestic and foreign capital.

Three methods are used to calculate GDP.

1) By expenditure (end-use method)

2) By value added (production method)

3) By income (distributive)

Value added is the market price of a firm's output minus the cost of raw materials consumed and materials purchased from suppliers.

I propose to consider the value added method for calculating the indicator of gross domestic product.

GDP is the monetary value of all production final goods and services for the year in the economy. This takes into account the annual volume of final goods and services created in the territory of a given country, or, within the geographical boundaries of a country.

In order to calculate the gross domestic product correctly, it is necessary to take into account all the services and products that were produced this year, but without double or double counting. Double counting - repeated summation of the same product when calculating gross indicators. This method mainly refers to final goods and services, since these goods are consumed within households or firms, and do not participate in further production, unlike intermediate goods. Here are some typical examples of the consumption of final goods and services - televisions, washing machines, hairdressing services. As mentioned above, in contrast to them, the flour bought by the factory for baking bread is an intermediate product. If, however, goods and services intended for further production are included in GDP, then we will get an overestimation of GDP. And this can be explained very simply, for example, the price of flour will be taken into account several times, first the result of the flour mill, then in the price of baking bread, then in the price of packaged bread in the store, in the price of crackers, etc.

The value added indicator, which represents the difference between the sales of finished products of firms and the purchase of materials, tools, energy and services from other firms, allows to exclude double counting.

Summing up all the value added of all firms in the country, one can determine the GDP, which represents the market value of all goods and services produced.

We briefly characterize the method of calculating GDP in terms of expenditures and incomes.

When calculating GDP by expenditure, the following values are summed up:

Consumer spending (C)

Public procurement of goods and services (G)

Gross private investment (Ig)

Net exports - the difference between exports and imports of a given country. (Xn)

When calculating GDP by income, the following values are summed up:

salary(w)

percentage(r)

corporate profits (PrC)

depreciation (A O)

indirect taxes (K N)

property income (D O)

Y \u003d A O + K H + r + R + w + D O + PrK

end products- These are products that go to final consumption and are not intended for further industrial processing or resale.

Intermediates goes into the further process of production or resale. As a rule, intermediate products include raw materials, materials, semi-finished products, etc.

However, depending on the method of use, the same product can be both an intermediate product and a final product. So, for example, the meat bought by a housewife for borscht is the final product, as it went into final consumption, and the meat bought by the McDonald's restaurant is intermediate, as it will be processed and put into a cheeseburger, which will be the final product in this case. product.

Value added, calculation methods

Value added is that part of the value of a product that is created in a given organization. Calculated as the difference between the cost of goods and services produced by the company (i.e. sales revenue) and the cost of goods and services purchased by the company from external organizations (the cost of goods and services purchased will consist mainly of materials used and other expenses paid by external organizations, e.g. expenses for lighting, heating, insurance, etc.)

2.5.GDP value added (production method)

GDP = sum of value added.

The value added of the firm = the firm's income - the intermediate cost of producing a good or service.

Total value added = total output level - total value of intermediate products.

GDP by expenditure

GDP = Final Consumption + Gross Capital Formation (investment in a firm, i.e. purchase of machinery, equipment, inventory, place of production)) + Government spending + Net exports (Export - Import; can be either positive or negative).

Final consumption includes spending on meeting the final needs of individuals or society, produced by the following institutional sectors: the household sector, the government sector (public sector), the sector of private non-profit organizations serving households. Gross capital formation is measured by the total value of gross fixed capital formation, changes in inventories and the net acquisition of wealth by a unit or sector.

GDP by income

GDP = National income + depreciation + indirect taxes - subsidies - net factor income from abroad (NIF) (or + net factor income of foreigners working in the country (NFR))

National income = wages + rent + interest payments + corporate profits.

GNP and NFD

GNP (gross national product) - the sum of final products, value added or the sum of goods and services produced in the economy for a certain period based on the use of national factors of production.

NFD (net factor income) - the difference between the income of citizens received in the territory of a given country and abroad.

National income and methods for calculating national income

National income is the monetary value of the total product created in the country during the year or the newly created value for a certain period (total income within the economy of a certain state, earned (created) by all owners) of economic resources (factors of production).

National income = GNP - (depreciation + indirect taxes).

National income = NNP - indirect taxes.

net domestic product and net national product

Net domestic product (NDP) is the difference between gross domestic product and consumption of fixed capital.

NVP = GDP - depreciation

Net national product (NNP) - the total volume of goods and services that a country produced and consumed in all sectors of its national economy in a certain period of time

Personal income, disposable personal income, calculation methods

Personal income (PI) is the total income received by the owners of economic resources (factors of production).

Disposable personal income (DPI) is used income, i.e. owned by households.

RLD = LD - individual income taxes.

Real and nominal GDP.

Nominal GDP is the total value of goods and services produced during the reporting period, at current prices of goods and services, at current prices of goods and services.

Real GDP is the value of these goods and services, calculated on the basis of prices in force in the designated base year.

GDP deflator index.

This is the ratio of nominal GDP to real GDP.

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Intermediate

INTERMEDIATE PRODUCT- part of the gross social product allocated during the year for current material costs (raw materials, materials, fuel, energy, purchased components, assemblies and semi-finished products). The rest of the social product forms the final social product.
The share of the intermediate product in the total social product changes under the influence of factors opposite in direction.

As a result of the deepening division of labor and the specialization of production, the intermediate product can grow faster than the final product; this is also facilitated by the growth of fixed production assets, the acceleration of their renewal, as well as an increase in depreciation rates.

At the same time, in modern conditions, technical progress, the observance of the economy mode, make it possible to consistently reduce the material intensity of production and the energy intensity of products, which leads to a decrease in the share of the intermediate product in the total social product.

In the twelfth five-year plan, the outstripping growth of the final product (machinery and equipment, consumer goods, finished building projects) is achieved in comparison with the intermediate product.

Ministry of Education of the Russian Federation

South Ural

State University

MACROECONOMICS

short course of lectures

Chelyabinsk 2012

Approved by the Educational and Methodological Council of the Faculty of Finance and Economics of the South Ural State University

The manual contains a short course of lectures on macroeconomics.

Primary attention is paid to such issues as indicators of the national economy, macroeconomic balance and cyclical development, monetary and financial system, government regulation of the economy.

The methodological manual is fully consistent with the program of this course and is intended for students of the Faculty of Finance and Economics of all specialties and forms of education.

Compiled by: Ph.D. Sciences, Associate Professor Zlokazov V.F.

Reviewers: Dr. Econ. sciences, prof. A.V. Gorshkov

Doctor of Economics sciences, prof. V.V. Sedov

Topic 1. Indicators of national output ............... 4

Theme 2. The economic growth................................................ .................... 9

Topic 3. Aggregate Demand and Aggregate Supply............................. 13

Theme 4. Consumption, Savings, Investments....................................... 20

Theme 5. Cyclical economic development ................................... 24

Topic 6. Unemployment and Employment ............................................................... ............. 29

Topic 7. Monetary system of the national economy .......... 33

Topic 8. Theory and practice of inflation .................................................................. ...... 36

Topic 9. The financial system of the national economy .................... 40

Theme 10. State regulation of the economy ........................ 45

Literature................................................................................................ 55

Topic 1. Indicators of national output

1. The total social product and its structure. final and intermediate product.

2. Gross national product (GNP) and methods of its measurement. GDP deflator.

3. Net national product and national income. personal and disposable income.

The total social product and its structure.

final and intermediate product

The total social product (SOP) is the totality of all goods and services produced in the national economy in a year. SOP has a natural-real and cost structure.

The natural-material structure of SOP is represented by commodities (PP) and means of production (SP), which in turn break down into means of labor (ST) and objects of labor (PT). Thereby:

SOP = PP + SP (1)

The cost structure of the SOP(a) is represented by the old and new costs.

The old cost characterizes the value of the compensation fund (FI), i.e. the value of the means of production going to replace those retired in a given year.

The new value characterizes the value of the consumption fund (FP), i.e. the value of consumer goods used to satisfy personal needs, as well as the accumulation fund (FN), i.e. the value of the means of production going to increase the scale of production.

Thereby:

SOP = PV + FP + FN (2)

Characterization of national output in the form of SOP(a) is necessary but not sufficient due to repeated counting.

To eliminate double counting, when determining the results of the national economy, only the value of final products is taken into account and the value of intermediate products is excluded.

An intermediate product is a set of goods to be further processed or further sold. Its dimensions are the higher, the higher the social division of labor, in which the product, before it takes on a finished form, passes through various stages of processing at different enterprises.

END PRODUCTS (final products) - goods and services used by end consumers, in contrast to intermediate products used as inputs in the production of other goods and services. Thus, the purchase of bread is taken into account as part of the final demand, which cannot be said about the flour used to make this bread.

The total market value of all final products (corresponding to the total expenditure in the calculation of national income) is equal to the total value added at each stage of production for all products in the economy.

UNFINISHED PRODUCTION (work in progress) - any items that are still in the process of becoming final products. Work in progress, together with inventories of materials and end products, form

INTERIM PAYMENTS (progress payments ) - a specific agreement, usually concluded at the beginning of the implementation of large construction projects, according to which payments for the work done are made in certain stages until the completion of the work.

INTERMEDIATES (intermediate products) - goods and services that are used by the firm as factors of production in the production of other goods and services. Steel, for example, is an intermediate product with many end uses, including car and washing machine bodies, nuts, bolts, etc.

Intermediate products are not taken into account when determining the gross national product in terms of national income, since this indicator takes into account only the value of final goods and services.

See end products, value added, Pyotr Ilyich Grebennikov.

BENEFITS, or GOODS (goods or commodities) - any material economic products (cars, washing machines, tools, units, etc.) that contribute directly (see) or indirectly (see) to the satisfaction of human needs. Consumer goods and industrial products are important components.

see also

P.I. Grebennikov. Macroeconomics (electronic textbook), Pyotr Ilyich Grebennikov.

P.I. Grebennikov.

SERVICES (services) - any intangible types of economic activity (hairdressing, catering, insurance, banking, etc.) that directly (see) or indirectly (see) contribute to the satisfaction of human needs. Services are an important component of the gross national product.

ADDED VALUE (value added) - the difference between the value of the products of a firm or industry (i.e., the total revenue received from the sale of these products) and the cost of raw materials, components and services purchased to ensure the release of these products. "Added value" is the value that a firm adds to purchased materials and services in the process of producing and selling products.

See value added tax

TOTAL INDOOR EXPENSES (total domestic expenditures ) - the total expenses of the inhabitants of a given country for final products (expenditures are not taken into account). If we subtract the cost of imports from this amount and add to it the expenses of foreigners on goods and services produced within this country, we get an estimate of the gross national product.

NATIONAL INCOME, or FACTOR INCOME(national income or factor income) - the total money income received by households in exchange for supplying factors of production to businesses over a given period of time. National income is equal to net national product and consists of the total monetary value of goods and services produced in a certain period of time (gross national product) minus the consumption of capital.

See, National Income Circulation Model, Pyotr Ilyich Grebennikov.

NATIONAL PRODUCT (national product) - the monetary value of all goods and services produced in the country during a certain period of time (gross national product). Gross national product less capital consumption or depreciation is net national product, which is equal to national income.

See calculation of national income

PURE INTERNAL PRODUCT (net domestic product) - the monetary value of all goods and services produced by the country in a year, minus the consumption of capital in the process of this production.

Cm.

NET NATIONAL PRODUCT (NNP) (net national product) is the gross national product minus the consumption of capital or depreciation of fixed assets, taking into account the fact that the production process consumes the capital stock of the country in a year.

CALCULATION OF NATIONAL INCOME (national income accounts) - a statistical description of the national economy, reflecting its state in a certain period of time (usually a year), national income represents the net value of all goods and services (national product) produced by the country during the year: it is a convenient monetary measure of economic activity . National income per capita serves as an indicator of the standard of living in different periods of time and in different countries.

National income can be estimated in three ways (see chart below):

(a) domestic product/output of goods and services produced by enterprises within the country (value-added GDP method), which does not include the value of imported goods and services. If the cost of intermediate goods and services included in the final product is added to the value of the final product, then due to such a “double counting”, the value of output is overestimated. To avoid this, only the added value produced at each intermediate step is taken into account. The total value added in various sectors of the economy (agriculture, industry) is the gross domestic product. If we add to it the net income received by individuals abroad (net income in the form of interest, rent, profits or dividends received by citizens of the country from holding assets abroad), we get the gross national product;

(b) the total income of the country's residents received from the current production of goods and services (the distributive method of calculating GDP). Such incomes are called factor incomes, since they are received for the provision of factors of production. It does not include transfer payments, such as unemployment or sickness benefits, because these transfers do not correspond to the production of any goods or services. The sum of all factor incomes (wages, salaries, self-employed income) must exactly match the gross domestic product, since each monetary unit of the price of goods and services produced simultaneously represents a monetary unit of income of the producer of these goods or services. To get from gross domestic factor income (= gross domestic product) gross national income (= gross national product), one must add the net income of individuals from owning foreign assets;

(c) the total domestic expenditures of the country's residents on consumption and investment (the method of calculating GDP by expenditures). This figure includes expenditure on goods and services (excluding expenditure on intermediate goods and services), including unsold goods and services transferred to inventory (inventory investment). However, on the one hand, part of the expenses of residents is directed to imported goods and services; on the other hand, expenditures by non-residents on goods and services produced by residents will be included in income per factor of these residents. Thus, to get total national expenditure (=gross national product) from total domestic expenditure, imports must be subtracted and exports added.

All of the above methods measure the gross monetary value of goods and services produced - the gross national product. However, in the process of producing these goods and services, the country's stock of fixed capital is subject to depreciation. Thus, it is also necessary to take into account the net monetary value of the goods and services produced (taking into account the depreciation of fixed capital or the consumption of capital) - the net national product. The net national product is called national income.

In practice, due to the difficulties in collecting reliable data, the three methods of calculating national income give different results, so the calculation must be supplemented with a definition of the error that would explain these discrepancies. In addition, in order to reflect the difference between monetary (nominal) and real values (see real values) of national income, it is necessary to take into account the effect of inflation on GNP, applying a price index calculated on the basis of all final goods and services produced in the economy - so called the GNP deflator.

CAPITAL ACCOUNT (capital account is the section in terms of national income that records government investment in infrastructure (such as roads, hospitals, schools) and private sector investment, such as machinery and equipment.

GROSS DOMESTIC PRODUCT (GDP) (gross domestic product (GDP)) - the total value of all final goods and services,

produced in the economy during the year. Gross domestic product can be represented as:

(a) the sum of the values added in each industry in the production process during the year (production method);

(b) the sum of the income of factors received in the production of the annual output (distributive method);

See calculation of national income,Pyotr Ilyich Grebennikov.

GROSS NATIONAL PRODUCT (GNP) (gross national product (GNP)) - the value of all final goods and services produced by the economy during the year (gross domestic product), plus net income from property abroad (interest rent, dividends and profits).

See calculation of national income.

GNP is an important indicator of a country's overall economic prosperity, while GNP per capita (see per capita income) gives an indication of the average standard of living of a population. When the GNP of several countries is expressed in some common currency (for example, US dollars), it becomes possible to compare the overall economic well-being of different countries, as shown below (according to: World Development Report, World Bank, 1992). (Central Statistical Office (CSO)) is a UK government agency responsible for collecting, analyzing and publishing national economic statistics, in particular national accounts and balance of payments.

Cm. Office for National Statistics

SELF-SUPPORT (self-sufficiency ) - limiting one's consumption by an individual (or household) at the expense of products produced on one's own. Developing countries with a large agricultural sector are characterized by a higher level of self-sufficiency than industrialized countries, for which labor specialization is the norm.

Cm.

NON-MARKET ECONOMIC ACTIVITIES (nonmarketed economic activity ) - any activity, usually legal, not reflected in the national accounts of the country (see. ). The labor and other resources used in such activities are not paid and thus their employment is not recorded. Examples of such activities are housework for a housewife (cooking, laundry) or unpaid work for charity workers. Such omissions distort the results of comparing the gross national income of different countries. Not least here is the fact that rural areas are largely self-sufficient, while urbanized countries prefer to buy rather than produce the products they need (milk, bread, etc.).

NON-MARKET PRODUCT (non-traded product)

1 . A product that cannot be traded under any circumstances because there are no markets for it. These products include, for example, collective goods such as defense.

2 . A non-tradable product is a product that cannot be traded outside a restricted area because its volume or weight makes it very expensive to transport and trade outside the restricted area. Gravel and bricks are examples of such a product.

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