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Lecture 8

Lecture outline Structure of national economy. Main macroeconomic indicators.Factors, which are increasing the competitiveness of the national economy.

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Слайд 1Lecture 8
.
National economy as a system

Lecture 8 .National economy as a system

Слайд 2Lecture outline
Structure of national economy.
Main macroeconomic indicators.
Factors, which

are increasing the competitiveness of the national economy.

Lecture outline Structure of national economy. Main macroeconomic indicators.Factors, which are increasing the competitiveness of the national

Слайд 3Aim of the lecture
To understand the role of macroeconomic indicators

in developing national economy system


Aim of the lectureTo understand the role of macroeconomic indicators in developing national economy system

Слайд 4Structure of national economy.
National economy is a complex of

different spheres of the economy.

Structure of national economy.  National economy is a complex of different spheres of the economy.

Слайд 5Structure of national economy
Material production sphere (industry, agriculture, construction,

communication, trade and others)
Non –material production sphere: culture, education and

science, health care, and others
Structure of national economy  Material production sphere (industry, agriculture, construction, communication, trade and others)Non –material production

Слайд 6Main of national economy is to develop economy and to

provide all members of society with convenient living standard, also

to increase GNP per person.

Main of national economy is to develop economy and to provide all members of society with convenient

Слайд 7To achieve the aim of national economy government carries out

the following policies, such as:
Fiscal policy
Monetary policy

To achieve the aim of national economy government carries out the following policies, such as:Fiscal policyMonetary policy

Слайд 8 Main macroeconomic indicators.
There are several indicators that measure results

of national economy. They are called macroeconomic indicators

Main macroeconomic indicators. There are several indicators that measure results of national economy. They are called

Слайд 9Main macroeconomic indicators
GNP
GDP
National income
Net national income
National wealth

Main macroeconomic indicatorsGNPGDPNational incomeNet national incomeNational wealth

Слайд 10How to calculate GNP
GNP=ΣPxQ
P-price
Q-quantity

How to calculate GNPGNP=ΣPxQP-priceQ-quantity

Слайд 11The methods of measuring GNP
1- according to the expenses
GNP=C+I+G+Xn
C-consumption expenses()
I-

investment expenses
G-government expenses
Xn- net export (Export-import)

The methods of measuring GNP1- according to the expensesGNP=C+I+G+XnC-consumption expenses()I- investment expensesG-government expensesXn- net export (Export-import)

Слайд 122. according to the income
GNP=wage+interest+
+dividend+ profit+rent

2. according to the incomeGNP=wage+interest++dividend+ profit+rent

Слайд 13What does GNP per person show?
GNP per person=
GNP: population
e.g.

180 000 000 USD: 17 000= 10 500

What does GNP per person show?GNP per person= GNP: populatione.g. 180 000 000 USD: 17 000= 10

Слайд 14Competitiveness
Competitiveness pertains to the ability and performance of a firm,

sub-sector or country to sell and supply goods and services

in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market.
CompetitivenessCompetitiveness pertains to the ability and performance of a firm, sub-sector or country to sell and supply

Слайд 15In recent years, the concept of competitiveness has emerged as

a new paradigm in economic development. Competitiveness captures the awareness

of both the limitations and challenges posed by global competition, at a time when effective government action is constrained by budgetary constraints and the private sector faces significant barriers to competing in domestic and international markets.
In recent years, the concept of competitiveness has emerged as a new paradigm in economic development. Competitiveness

Слайд 16“Competitiveness is defined as the ability to produce goods and

services which meet the test of international markets, while at

the same time maintaining high and sustainable levels of income or, more generally, the ability of (regions) to generate, while being exposed to external competition, relatively high income and employment levels’.”

“Competitiveness is defined as the ability to produce goods and services which meet the test of international

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