Gross national. GDP and GNP. Gross national product and gross domestic product. How is GDP calculated?

Gross domestic product- GDP is the total cost of production in the spheres of material production and services, regardless of the nationality of enterprises located on the territory of a given country. GDP is calculated on a so-called territorial basis. Three calculation methods: 1) production - the amount of gross value added (which are grouped by industry or sector of activity); 2) end-use method - calculation as the sum of end-use components; 3) distribution - the amount of primary income (which is paid by production units (wages of employees, taxes)

Gross national product- GNP is the total value of the entire volume of products and services in both spheres of the national economy, regardless of the location of national enterprises (in the country or abroad). GNP is calculated on a national basis.

GNP can be calculated using one of two methods. End use method (by cost). When calculating GNP by expenses, the expenses of all economic agents using GNP, households, firms, the state and foreigners (expenses on our exports) are summed up. Total expenses can be broken down into several components:

GNP = C+ I+ G + NE,

where C is consumption; I- investments; G- government procurement; NE is net export.

Investments include the cost of goods purchased for future use. Government procurement is the total cost of goods and services purchased by government agencies ( military equipment, construction and maintenance of schools, roads, maintenance of the army and government apparatus

Distribution method (by income)

When calculating GNP by income, all types of factor income are summed up, as well as depreciation charges and net indirect taxes on business, i.e. taxes minus subsidies. The following types of factor income are usually distinguished as part of GNP (the criterion is the method of generating income):

Remuneration (wages, bonuses, etc.);

Income of owners (income of unincorporated enterprises, small shops, farms, partnerships, etc.);

Rental income;

Corporate profits (remaining after wages and interest on loans);

Net interest (as the difference between interest payments by firms to other sectors of the economy and interest payments received by firms from other sectors - households, the state, excluding interest payments on government debt).

The main requirement when calculating GDP and GNP indicators is that all goods and services produced during the year are counted only once, i.e. so that the calculation takes into account only final products and does not take into account intermediate products that can be bought and resold many times.

Final products are goods and services that are purchased by consumers for final use rather than for resale.

National income

This is the value newly created during the year, characterizing what production in a given year added to the welfare of society. When calculating it, unlike GDP, depreciation, indirect taxes, and government subsidies are not included. There is a production and used ND. Production ND is the entire volume of newly created value of goods and services. Used ND - produced ND minus losses and foreign trade balance.

National wealth (NB). This is an indicator used to characterize the property situation of the country as a whole. To calculate income tax and net worth, a balance sheet of assets and liabilities is used. The indicators at the beginning and at the end of the period are compared.

80 Aggregate demand and aggregate supply. Macroeconomic equilibrium

The term "aggregate demand" refers to the total amount of money that different sectors of the economy are willing to spend in a given period of time.

The composition of aggregate demand includes the following elements: C - household consumer expenditures; I - investment expenditures of the private sector; G - government procurement; HP is a net export. The majority of aggregate demand (50% of ND) is made up of household expenditures on consumer goods and services, i.e. element C, which is called consumption for short. Investment expenditures represent the demand of firms and households for investment goods (15-20% of GNP). Public procurement of goods and services is the government's expenses for paying for services (education, healthcare, etc.) and maintaining government officials (federal, regional, municipal) - 30% of the country's national income. Net exports are the difference between exports and imports.

Total purchases (total demand) depend on many factors. This includes the general level of prices in the country, the level of real national income, the value of accumulated property, state policy in the field of taxation, personal income, monetary, credit, etc., which determine the amount of taxes, interest rates, pensions, wages for employees of state-funded enterprises and organizations, expectations of firms and households, exchange rates, etc. Aggregate demand and its value can be depicted graphically using the aggregate demand curve. If we mark the price level (P) vertically and output (Y) horizontally, that is, GDP, then, taking different values of the price level and output, we can construct the aggregate demand curve AD (see Fig. 7.6).

Rice. 7.6 Aggregate demand curve

At the price level P1, the value of aggregate demand at point A will be equal to Y1; when prices fall to level P2, the value of aggregate demand will increase at point B to level Y2. Just as at the micro level there is an inverse relationship between the price of a product and the amount of demand for the product, so in macroeconomics there is an inverse relationship between the price level and the amount of aggregate demand. The aggregate demand curve AD is thus downward sloping.

The explanation of the inverse relationship between the price level and the amount of aggregate demand is different from the explanation of the law of demand in microeconomics. Recall that in microeconomics the inverse relationship between the price of a product and the quantity demanded for a product was explained by the law of diminishing marginal utility, the substitution effect and the income effect (topic 3). At the macroeconomic level, it is impossible, for example, to explain the increase in aggregate demand by the substitution effect, since it is assumed that all prices fall. Or take the income effect. The demand curve for an individual good assumes constant income. In a macroeconomic environment, a decrease in the price level causes a decrease in income for both households and enterprises.

The downward nature of the aggregate demand curve is explained by the following effects:

wealth effect,

interest rate effect,

effect of import purchases.

The wealth effect is that when the price level increases, the real value of society's assets (wealth) decreases, that is, their purchasing power decreases. Aggregate supply (AS, aggregated supply) in economic theory is the sum of all final goods and services produced in a country, which firms are willing to offer on the market for a certain period of time at every possible price level.

The interest rate effect means that when the price level rises, the interest rate rises, which leads to a reduction in the amount of investment spending that is part of aggregate demand.

The effect of import purchases is that when the price level in the economy increases, net exports, which are part of aggregate demand, decrease

Cumulative offer

Aggregate demand can be represented as national income used and aggregate supply as national income produced.

The dependence of the real volume of national production (product) on the price level is called the aggregate supply curve.

The aggregate supply curve shows the relationship between total supply and the general price level in the economy.

The nature of the AS curve is also influenced by price and non-price factors. As with the AD curve, price factors change the quantity of aggregate supply and cause movement along the AS curve. Non-price factors cause the curve to shift to the left or right. Non-price supply factors include changes in technology, resource prices and volumes, taxation of firms and the structure of the economy. Thus, an increase in energy prices will lead to an increase in costs and a decrease in supply (the AS curve shifts to the left). A high harvest means an increase in aggregate supply (a shift of the curve to the right). An increase or decrease in taxes respectively causes a decrease or increase in aggregate supply.

The shape of the supply curve is interpreted differently in the classical and Keynesian schools of economics. In the classical model, the economy is considered in the long term. This is a period during which nominal values (prices, nominal wages, nominal interest rates) change quite strongly under the influence of market fluctuations and are flexible. Real values (output volume, employment level, real interest rate) change slowly and are taken as constant. The economy operates at full capacity with full employment of the means of production and labor resources.

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The aggregate supply curve AS appears as a vertical line, reflecting the fact that under these conditions it is impossible to achieve further increases in output, even if this is stimulated by an increase in aggregate demand. Its growth in this case causes inflation, but not an increase in GNP or employment. The classic A S curve characterizes the natural (potential) volume of production (GNP), i.e. GNP level at the natural rate of unemployment or maximum high level GNP, which can be created using the technologies, labor and natural resources without increasing inflation rates.

The aggregate supply curve can move left and right depending on the development of production potential, productivity, production technology, i.e. those factors that influence the movement of the natural level of GNP.

Gross National Product. The main characteristics of the gross national product are the following indicators.

GNP includes all products produced, including that part of it that is not sold; therefore, the increase in production inventories is taken into account when calculating GNP.
GNP is measured in monetary terms and reflects the market value of goods and services.
GNP excludes unproductive transactions entered into during the year. Such transactions include purely financial transactions and the sale of second-hand goods. Financial transactions are of three types: a) government transfer payments (social security payments, unemployment, pensions different types); b) private transfer payments; c) transactions with securities.
GNP is free from double counting because it takes into account the market value of final products only. Final products are goods and services that are purchased for final use and not for further processing, processing or resale, i.e. The cost of intermediate products is excluded from the GDP.

In accordance with the modern international standard UN SNA (1993), it is recommended to include the results of activities in the shadow sector of the economy in GNP, including in that part of the sector where legally prohibited goods and services are produced. According to the 1986 UN SNA, when determining the value of GNP, the results of activities in the shadow economy were not taken into account. In a number of countries, attempts are currently being made to take into account in GNP the results of the activities of that part of the shadow economy where goods and services permitted by law are produced, but in this case tax laws are violated. At the same time, the overwhelming majority of countries, including Russia, do not consider it advisable to take into account goods and services, the production of which is prohibited by law, when calculating GNP.

Currently, in accordance with the system of national accounts, income tax can be calculated on a gross and net basis, i.e. before and after deduction of depreciation of fixed capital. In the first case, the gross national income is equal in value to the gross national product. In the second case, net national income compared to GNP is reduced by the amount of depreciation charges.

Methods for measuring GNP. There are three ways to measure GNP (GDP):

by value added (production method);
expenses (end-use method);
income (distribution method).

When calculating GNP using the production method, the value added at each stage of production of the final product is summed up.

Added value- this is the difference between the market value of products produced by the company and the amount paid to other companies for purchased raw materials, materials, etc. (i.e. for intermediate products).

The value of GNP is the sum of value added by all producing firms. If goods and services are created and sold only within the country, then the gross domestic product (GDP) indicator is used. The method of measuring the volume indicator, which takes into account the specific contribution of various firms and industries to the creation of GNP, avoids the problem of double counting.

The second way to measure GNP involves summing up the expenses of all economic agents using GNP. In essence, we are talking about the aggregate demand for produced GNP. The structure of total expenses can be presented as follows:

household consumption expenditures, which include household expenditures on goods durable(except for housing purchase expenses) and current consumption;
total private investment, consisting of depreciation charges and net investment. Net investment increases the stock of capital in the national economy;
public procurement of goods and services;
net exports of goods and services, calculated as the difference between exports and imports.

Of these components, the largest share usually falls on consumer spending, and the most dynamic indicator is investment spending. The share of consumer spending in GDP by the end of the 20th century. ranged from 40% in Singapore, 53% in South Korea, 58% in Japan, 68% in the USA. Total private investment accounted for from 16% in the United States to 30% in Japan and 38% in South Korea. IN Russian Federation at the beginning of the 21st century. The main items of GDP expenditure were as follows: household consumption expenditure was 46.1%, gross capital formation - 17.1%, government expenditure - 14.4%, net exports - 20.4%.

When calculating GNP by income, all types of income for the relevant factors of production are summed up, as well as two components that are not income: depreciation charges and net indirect business taxes. GNP includes such types of income as wages of employees; owners' income; corporate profits; rental income; bank interest. If in the structure of GNP (GDP) as a whole the share of wages by the beginning of the 21st century. ranged from 52% in EU countries to 60% in the USA, then its share in the structure of factor income is noticeably higher (about 70% in the USA).

Of the considered methods for determining GNP, the production and end-use methods are the most widely used. This choice in most EU countries is associated with the availability of a reliable statistical base. Since in Russia currently the most accessible and timely information is data on the production of goods and services collected by Rosstat on the basis of statistical reporting of enterprises, the main method for calculating GNP (GDP) is the production method.

Since GNP is a monetary indicator, its value depends on price dynamics and purchasing power monetary unit. Therefore, when determining the volume of production, it is necessary to take into account the price level, which is expressed in the form of a price index, which is the ratio between the total price of a certain set of goods and services (called the market basket) for a given time period and the total price of a similar group of goods and services in the base period ( base year):

Price index in a given year =

Market basket price in a given year
Market basket price in base year

The GNP price index is a GNP deflator. It includes the prices of consumer goods and services, the prices of capital goods purchased by the government, and the prices of goods and services bought and sold in the world market. Therefore, the GNP deflator is an adjustment of nominal GNP to account for changes in prices. Thus, GNP is a monetary, time and quantitative indicator. GNP expressed in current prices is called nominal GNP. GNP, adjusted for the price level, is called real GNP. It is calculated by the formula

Real GNP =

Nominal GNP
Price index

When calculating GNP, certain difficulties arise: some goods and services produced in a given year do not enter the market and therefore do not have a market price. In GNP they are taken into account at imputed value. For example, the services of civil servants who do not have a market value are taken into account in GNP as corresponding government expenses, in particular for employee wages. Many goods and services are produced and consumed by households without being exchanged in markets, and they are often not included in GNP calculations.

One of the problems in assessing the results of the national economy is taking into account the shadow sector of the economy. This problem is especially relevant for countries implementing economic reforms. The growth of the shadow sector and the difficulty of accounting for its scale lead to an underestimation of the value of GNP compared to the results of its use, since illegally produced goods and services and the income received are spent on consumption and accumulation legally.

Indicators of GNP or ND per capita, are often used for cross-country comparisons, in particular when assessing the level of well-being in a country. However, their use may lead to a distortion of reality. Thus, two countries may have the same GNP per capita, but different price levels and different purchasing power of the monetary unit. GNP does not reflect improvements in the quality of goods, changes in the structure of consumption and the distribution of goods and services among the population. When assessing the level of well-being of a society, the GNP per capita indicator can be supplemented by indicators of the level of education of the population, life expectancy, housing conditions, etc. This allows a more objective assessment of the level of well-being of the nation.

The final products and services produced using the internal resources of the state over a given period of time. GNP determines the cost of production made by production factors that end up in the possession of citizens of this power, including on the territory of other states.

GNP characterizes both the uniform amount of costs and the uniform amount of profits in the economy.

Gross state product is considered an earlier indicator than GDP. It is worth noting that GNP is used in the statistics of a number of foreign countries to this day.

GNP reflects the consequences of work in two spheres of the ethnic economy of material production and services. Characterizes the cost of the entire volume of final production of products and services in the economy for 1 year (quarter, month). The attribute is calculated in values, both current (working) and constant (tariffs of some base year).

Difference between GNP and GDP

GDP is calculated using the so-called territorial indicator. This is the total price of products from spheres of material production and areas of activity, regardless of the national affiliation of companies located in the area of this power;

GNP is oriented as the market price of all final goods and services produced in the economy for the year. With all this, an annual amount is provided for the final products and services created by the residents of the state, both within the state territory and abroad.

Another definition of GNP is the required amount of earnings of companies, organizations, and the population in material and intangible production. GNP also takes into account depreciation charges that will arise as a result of including part of the price of the products used (machines, machines, etc.) in the finished product. As with GDP, to correctly calculate GNP, you need to take into account all products and proposals completed this year once.

Thus, GNP differs from GDP by the required amount of so-called factor earnings from the use of the resources of this power abroad, transferred to the country of money invested abroad, belongings available there, the wages of people working abroad minus similar profits of foreigners exported from the power. Traditionally, to calculate GNP, the difference between profits and earnings acquired by enterprises and individuals of that power abroad, on the one hand, and the profits and earnings acquired by foreign investors and foreign employees in that country, on the other hand.

This difference is very small: for the main Western countries less than ±1% of GDP. The UN Statistical Service recommends using the GDP indicator as the main indicator.

Calculation of Gross State Product (GNP)

Thus, in order to obtain the gross state product, it is necessary to add to GDP the difference between receipts from factors of production (factor earnings) as a result of the border and factor earnings of non-residents in this country. Residents are all persons living on the territory of this power, not counting foreigners who come to it for a period of less than a year.

For example, after calculating the gross domestic product of Estonia for a certain period, it is necessary to add to it factor profits from Estonian firms located in other countries, and subtract the profits of firms from other countries located on the territory of the republic. The quantitative difference between the gross domestic product is not radical and in developed countries does not exceed 2%.

GNP can be represented in the form PQ, where the P sign represents the level of prices, and the Q sign is the volume of real material amenities and services that are legally sold and provided. As follows, natural production, natural exchange (barter), and labor are usually not reflected in the gross product.

Accounting for Gross State Product (GNP)

The gross product includes exclusively goods of final use at the prices of final buyers.

These include, firstly, products and offers that households purchase for their own use and, secondly, investment products. Also, final use goods include all municipal purchases and exports of products abroad.

Own-use goods include goods of daily use and long-term use: food, clothing, household appliances, etc.

Investment products include all construction. Similarly, such goods include purchases of production equipment.

All municipal purchases of products, services and construction applications are considered final use products.

The creation, sale, and purchase of final-use products are classified as productive transactions. As follows, these transactions increase the gross product. Unproductive transactions are not provided for in the GNP.

Gross product takes into account exclusively the final goods produced over a certain period of time, for example, a year. As follows, everything that was done last year cannot be taken into account again this year. In addition to all this, the product produced should be taken into account once. Eliminate sales and sales of old items that were already provided for earlier. This year's GNP, for example, will take into account cars produced in the same year, although old cars that are resold will not be taken into account in GNP. The product is considered sold as soon as it is purchased by the final buyer.

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Gross National Product (GNP)- one of the main macroeconomic indicators that give a general idea of the economic situation of the state. The term was first introduced by Simon Smith (Semyon Kuznets - a native of Pinsk, who later emigrated to the USA).

The essence of the concept can be represented as:

GNP = value of all final products (goods and services at market prices) produced by a country (domestic producers only) + the sum of net income from abroad.

Please note that only the final, ready-to-eat product is summed up, and not the intermediate product. Operations for the redistribution of the produced product are not included in the calculation. Therefore, the indicator does not include:

sale of used goods, because their cost is already taken into account during the first sale;
the cost of what is produced and consumed within households (for example, what is grown in personal plots);
natural exchange between citizens;
purely financial transactions (trading securities, etc.);
pensions, other financial transactions not related to the production of goods and services;
turnover "shadow".

GNP is calculated for a certain period, usually a year.

It is defined in monetary terms, in national currency or recalculated according to the established one into one of the “hard” currencies.

GNP is consonant with and, in fact, related to another common term - GDP (Gross Domestic Product). The difference is that it is determined on a territorial basis, while GNP is the sum of the results of the activities of national producers, regardless of their location. GNP can be obtained from GDP by subtracting the value of what foreign companies produce within the state and adding the results of activities of national enterprises abroad.

GNP can be calculated in three different ways:

by added value (production method) - by summing up all added values produced during the period;
by income (distribution method) - by adding income from rent, depreciation charges and indirect taxes;
by expenditure (end use) - by calculating the sum of household consumer spending, government spending (purchases), private domestic investment, net exports (exports minus imports).

Since the gross national product is a turnover indicator, i.e. the same value is for some an expense, for others an income, for others a result of production, its value does not depend on the calculation method.

Gross national product can be calculated in prices valid at the time of the study - Nominal GNP. Or taking into account price changes in the billing period - Real GNP. The amount by which Nominal GNP must be multiplied to obtain Real GNP is called the GNP Deflator.

The GNP deflator is the ratio of prices for goods and services in the period taken as the base period in relation to the calculation period.

GNP may be greater or less than GDP by the difference between inflow and outflow Money abroad. In cases where the income of non-residents within the country is greater than similar income received from the use of national factors abroad, GNP will be lower than GDP. This situation generally negatively characterizes the country’s economy and indicates an outflow of capital. The opposite situation is, as a rule, inherent in strong economic systems.

In the Republic of Belarus, as in many other countries, the difference between GDP and GNP is so small that it is often not taken into account.

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Introduction........................................................ ........................................................ ................................ 2

Chapter I. Gross National Product (GNP)................................................. ... 4

1.1 Definition of GNP.................................................... ........................................................ .............. 4

1.2 Calculation of GNP.................................................... ........................................................ .......................... 5

1.3 GNP in the process of redistribution: a system of interrelated indicators. 9

1.4 Imperfection of the GNP indicator. Net economic welfare.. 11

Chapter II. Gross Domestic Product (GDP)................................................................. .... 12

2.1 general characteristics GDP........................................................ ......................................... 13

2.2 Methods for calculating GDP.................................................... ........................................................ ....... 15

Chapter III. Using the System of National Accounts to Present GDP in Macroeconomic Analysis and Forecasting.................................................... ........................................................ ........................... 27

Conclusion................................................. ........................................................ ....................... 33

Bibliography............................................... .................... 34

It is now common knowledge that any country sooner or later moves to a market economic system. At the same time, the state must carry out reasonable intervention in the country’s economy. The degree of this intervention may vary, but one rule will always apply. To effectively regulate the economic life of the country, the state apparatus must have some information about the processes occurring in the economy. These data (or indicators) become available through the maintenance of economic statistics.

Economic statistics is one of the most important branches of statistics as a scientific discipline and type of practical activity of state statistics bodies, which deals with the quantitative characteristics of mass phenomena and processes in the economy. The simplest indicators of quantitative measurements of economic phenomena are indicators of price dynamics, volume of production, population and labor resources, unemployment, degree of uniformity of income distribution, availability of fixed and working capital, etc. However, in some cases, more complex ones are quantitatively measured in economic statistics economic processes and phenomena, and also the relationships between them are established, for example, with the help of the inter-industry balance, a digital description of inter-industry connections is given, the dependence between the output of sectors of the national economy and the final product, i.e. products used for consumption and accumulation. Economic statistics data allow us to provide a systematic quantitative description of all the main aspects of the economic process and the economy as a whole.

An important feature of economic statistics is its systematic approach to the study of economics, which involves developing a system of indicators for studying economics that covers the main types of economic activity and aspects of the economic process. The systematic nature of economic statistics implies consistency between the various indicators used to describe and analyze different but interrelated aspects of the economic process.

When determining the content of indicators, a qualitative analysis of the processes and phenomena being studied is carried out, which, as a rule, is based on concepts of a political economic nature. These concepts mainly apply to the most important macroeconomic indicators, such as GDP, national income, savings, etc. For example, according to one of the political economic concepts used in the system of national accounts (SNA), it is envisaged to identify the types of activities that create value , a national product is produced. Based on another important concept of a political economic nature, the content of the system of income indicators is determined: primary income, disposable income, national income.

The purpose of this work is to reveal the concept of gross national product (GNP) and determine its place in the national accounting system. A slightly modified version of the GNP indicator - gross domestic product (GDP) - will also be considered. Both indicators are general, as they reflect the economic potential of the country. This determines the central place of GNP and GDP in the national accounting system, and consequently in economic statistics.

Economic theory and statistics use a number of indicators to measure the volume of national production, among which GNP occupies an important place. GNP is defined as the market value of all final goods and services produced in an economy in a year. This takes into account the annual volume of final goods and services created by citizens of the country, both within the national territory and abroad. Another definition of GNP is the sum of the income of enterprises and public organizations in material and intangible production. GNP also takes into account depreciation charges, which are formed as a result of including part of the cost of used goods (machines, machines, etc.) in finished products. To correctly calculate GNP, it is necessary to take into account all products and services produced in a given year only once. This avoids double counting and over-inflating the value of GNP, since many products are sold several times before they are processed into the final product. The added value indicator, which represents the difference between firms' sales and firms' purchases of materials, tools, fuel, energy, services, etc., allows us to eliminate double counting. In other words, value added is the market price of a company's products minus the cost of consumed raw materials and materials purchased from suppliers.

By summing up the value added produced by all enterprises, GNP can be determined, which represents the market value of all goods and services produced.

An important modification of GNP is the GDP indicator, which sums up the value added of all producers of goods and services, called residents. Residents are citizens living in the territory of a given country, with the exception of foreigners living in the country for less than 1 year.

If we add to the GDP indicator the difference between receipts from factors of production (factor income) from abroad and factor income received by foreign investors in a given country, then we get the GNP indicator. So, for example, for France, after calculating the GDP indicator, you need to add factor income receipts from the UK, USA, Germany, etc. and deduct the income of British, American, and German market economy entities operating in France. The difference between GDP and GNP is insignificant and fluctuates within ±1% of GDP.

At the end of 1987, the USSR adopted a government decree on the use of the UN methodology in calculating the most important final macroeconomic indicators. In 1989, the Goskomstat report already included the GNP indicator, although, obviously, it would be more accurate to call it GDP, because balance of foreign production in former USSR and present-day Russia is still extremely small.

GNP is calculated at current market prices, which represents its nominal value. To obtain the true value of this indicator, it is necessary to clear prices from the influence of inflation, weigh them, i.e. apply a price index, which gives the real value of GNP. In the USA, for example, in 1990, GNP in current prices amounted to $5,570 billion, and in constant prices – $4,254 billion.

The ratio of nominal GNP to real shows the increase in GNP due to rising prices and is called the GNP deflator.

GNP is characterized as “the most accurate total measure of goods and services that a country can produce” (P. Samuelson). Economists present 2 ways to measure it.

Method for calculating GNP based on expenses.

GNP is defined as the sum of goods and services available to society in a certain period of time. The value of GNP is the monetary value of the final products and services produced during the year. In other words, it is necessary to sum up all expenses for the acquisition (consumption) of the final product.

The GNP indicator includes:

Consumer spending (C).

Gross private investment in the national economy (Ig).

Government procurement of goods and services (G).

Net exports Xn, which represents the difference between exports and imports.

Thus, the expenses listed here constitute GNP and indicate the market value of annual production. Therefore, total GNP can be calculated using the formula:

GNP = C + Ig + G + Xn

Method for calculating GNP based on income.

GNP, on the other hand, is the sum of the income of individuals and businesses (wages, interest, profit, rent) and is defined as the sum of the remuneration of the owners of the factors of production. In this case, GNP also includes indirect taxes on enterprises, depreciation, and property income.

GNP can also be defined as the sum of the incomes of sectors of the national economy.

The combination of two approaches to calculating GNP based on income and expenses is shown in Table 1. This scheme simultaneously describes two mutually agreed upon approaches to calculating the indicator under consideration. GNP, calculated by income, is distributed among wages of hired workers, rent payments, interest, dividends, income of individual owners, corporate income taxes, indirect business taxes, and depreciation deductions.

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