Units. social reproduction

1. Social reproduction. Resident and non-resident institutional units

Reproduction, carried out at various levels of economic organization, is a complex, cyclically organized system, covering the processes of production, distribution, exchange and consumption of material and intangible goods.

The economy always exists within state boundaries and, therefore, its resources, opportunities, and potential are limited not only by the existing conditions for reproduction, but also by the availability of minerals, population, territory, etc. In other words, social reproduction, that is, constantly renewed production, distribution, exchange and consumption in a given country is carried out as national reproduction.

In the system of national accounts ( SNA) grouping of economic units by institutional sectors is applied. Sector is a set of institutional units (i.e., economic entities that can own assets, incur liabilities, engage in economic activities and transactions with other units on their own behalf) that are homogeneous in terms of functions performed and sources of funding. The Russian SNA distinguishes the following sectors of the national economy:
– non-financial enterprises (enterprises for the production of goods, except for financial services);
– financial institutions;
- state institutions;
– non-profit organizations serving households;
- households.

The names of the institutional sectors do not fully comply with the international standard. Upon completion of work on the introduction of the classifier of institutional sectors of the economy into statistical practice, this discrepancy will be eliminated.

The interconnections of sectors of the domestic economy with other countries are reflected in the accounts of the "rest of the world", which unite all institutional units-residents in the part in which they interact with residents of the national economy.

Residents are enterprises, organizations and households involved in economic activities in the economic territory of the country for a long period (at least a year).

A unit is considered institutional if it maintains a complete set of accounts and is legal entity, i.e. can independently make decisions, manage its material and financial resources, assume obligations and carry out economic activities and transactions with other units.

If a unit does not have both characteristics of an institutional unit, then on the basis of the following principles:
- households are considered institutional because they do not maintain a complete set of accounts, but always manage their resources independently;
– units that do not maintain a complete set of accounts are among the institutional units where their accounts are included integral part;
– units that maintain a complete set of accounts but are not legal persons are among the institutional units that control them.
2. GNP (GDP). Methods of calculation. Nominal and real GDP. Price indices, the concept of deflator
Gross domestic product (GDP) is the total market value of final products (goods and services) produced in the economic territory of the country during one year.

Inclusion in GDP of the value of only final products avoids double counting.

Previously, instead of GDP, a similar indicator was used - gross national product (GNP). The main difference between GNP and GDP is that GNP measures the value of products produced by factors of production owned by citizens of a given country, including those in other countries.

GNP is calculated like GDP, but differs from it by the amount of net factor income from abroad (NFI):

GNP=GDP+NFD.

There are three methods for measuring GDP:

1. production method (Pabout added value). GDP is the sum of gross value added by industry at basic prices plus net taxes on products.

2. Distribution method (according to income). GDP is the sum of factor income (wages of employees with social contributions, gross profit and mixed income) and two non-income components, consumption of fixed capital and net taxes on production.

3. End use method ( on expenses). GDP is the sum of household consumption expenditures ( FROM); investment spending by firms and households (I) public procurement ( G) and net exports (X n ).

Personal consumption spending - household expenditures on durable goods, services and current consumption. Investment costs – the costs of firms for the purchase of productive capital and the costs of households for durable products (cars, houses, etc.). State procurements - part of government spending, in exchange for which society receives public goods (defense, education, etc.). Net export There is a difference between export and import.

So, GDP = C + I + G + X n .

Under all methods of calculation, GDP does not include: unproductive transactions: a) purely financial transactions (public and private transfer payments, buying and selling valuable papers); b) sale of used goods; transactions and services that are difficult or impossible to account for: a) the work of housewives in their household; b) the work of scientists "for themselves"; c) barter exchange; d) shadow economy income, etc.

Nominal GDP - this is the cost of goods and services produced, expressed in actual (current) market prices. Prices are constantly changing, therefore, when determining the dynamics of GDP over several years, it is difficult to understand whether its growth (fall) occurred due to an increase (fall) in prices or real goods. Real GDP eliminates price changes - this is a product of production, measured in constant (base) prices. Any prices can be taken as constant prices. Real GDP reflects the actual growth (fall) of goods and services. Real GDP is obtained by dividing nominal GDP by a price index called GDP deflator.

Price index (GDP deflator) is determined by dividing the value of the market basket in the prices of the year under study by its value in the prices of the base year. The GDP deflator is calculated by type Paasche index, where the set of goods of the current period is used as weights:

Where  the prices of the i-good, respectively, in the base (0) and current (t) periods;  the amount of i-goods in the current period.

The GDP deflator is equal to nominal GDP divided by real GDP.
Example. Suppose the market basket consists of two goods: 200 kg of flour and 400 kg of apples. Compared to the base year, the price of flour increased from 9 to 11 rubles. per kg, and the price of apples - from 20 to 25 rubles. per kg. Find the market price index (GDP deflator).

Solution:

CPI = (200 *11+400*25)/(200*9 + 400 *20) = 12200/9800 = 1,24.

Thus, the market basket has risen in price by 24%.

3. Economic cycle and its phases. Types, causes, features.

Economic (business) cycle- regular fluctuations in the levels of production, employment and income, usually lasting from 2 to 10 years. The reasons are: periodic depletion of autonomous investments; weakening the effect of animation; volume fluctuations money supply; renewal of fixed capital, etc. Economic development is always associated with an imbalance, with a deviation from the average indicators of economic dynamics. The most striking manifestations of instability are inflation(increase in the price level, depreciation of the national currency) and unemployment(low level of production and employment).

The cycle can be divided into two periods: descending(drop in production) and ascending(growth in production). Since economic booms and busts, which are the essence of the business cycle, play a key role in fluctuations in economic (business) activity, economists call such cycles business.

expansion phase begins with the active commissioning of new enterprises and the modernization of old ones, the growth of production volumes, employment, investment, personal income, an increase in demand and prices, and ends boom- a period of ultra-high employment and overload of production capacities. During a boom, the price level, the wage rate and the interest rate are very high. AT highest point cycle called peak, all of these indicators reach the maximum value.

The inevitable consequence of the boom is a turn in the development of the cycle, when the growth of production is replaced by its recession. This indicates the onset crisis phases. The increase in unrealizable commodity stocks leads to a decrease in production volumes. Industrial investment is reduced, and, consequently, the demand for labor is falling. AT phase of depression the decline in GDP and the increase in unemployment are significantly slowing down, the volume of investment is close to zero. Therefore, during this period, the economy is characterized by stagnation in production, sluggish trade, and the presence of a large mass of free money capital.

Types of cycles

There are different types of cycles by duration:

 centenary cycles lasting a hundred or more years;

 "Kondratiev cycles", the duration of which is 50-70 years and which are named after the outstanding Russian economist N.D. Kondratiev, who developed the theory of "long waves of the economic situation" (Kondratiev suggested that the most destructive crises occur when the the fall in business activity of the "long-wave cycle" and the classical; examples are the crisis of 1873, the Great Depression of 1929-1933, the stagflation of 1974-1975);

 classical cycles (the first “classical” crisis (crisis of overproduction) occurred in England in 1825, and since 1856 such crises have become global), which last 10-12 years and are associated with a massive renewal of fixed capital, i.e. . equipment (due to the increasing value of the obsolescence of fixed capital, the duration of such cycles has decreased in modern conditions);

 Kitchin cycles lasting 2-3 years.

Selection different types economic cycles is based on the duration of operation various kinds physical capital in the economy. Thus, centennial cycles are associated with the appearance scientific discoveries and inventions that make a real revolution in production technology (remember, the “age of steam” was replaced by the “age of electricity”, and then the “age of electronics and automation”). Long-wavelength Kondratiev cycles are based on the service life of industrial and non-industrial buildings and structures (the passive part of physical capital). Approximately after 10-12 years, the equipment (the active part of physical capital) wears out, which explains the duration of the “classic” cycles. In modern conditions, of paramount importance for the replacement of equipment is not physical, but its obsolescence, which occurs in connection with the emergence of more productive, more advanced equipment, and since fundamentally new technical and technological solutions appear at intervals of 4-6 years, the duration of cycles becomes shorter . In addition, many economists attribute the duration of cycles to the massive renewal of consumer durables (some economists even suggest that they be classified as investment goods purchased by households) occurring at intervals of 2-3 years.

Unemployment, its types and measurement. Okun's law. regulation of the unemployment rate.

Unemployed – an adult (over 16 years of age) who is not an employee or entrepreneur, and is also looking for work and is ready to start it.

Labor force (economically active population) is the total number of employed and unemployed. Participation rate (LL) is the share of the labor force in the adult population. LS is an indirect measure of social welfare.

Unemployment rate (UB) is the share of the unemployed in the labor force. The lower the unemployment rate, the higher the income, the lower the social tension. Share of unemployed in the adult population (db) equals the product of the unemployment rate and the participation rate. With the improvement of the general socio-economic situation in society, this indicator decreases.

Types of unemployment:

1) frictional unemployment is associated with finding and waiting for work. It exists even when the number and structure of vacancies coincide with the number and structure of the unemployed;

2) structural unemployment is associated with scientific and technological progress, as a result of which the demand for some professions increases, while for others it decreases (for example, programmers and loaders);

3) cyclic unemployment is associated with a decline in social production, during which the number of vacancies is less than the number of unemployed.

Full employment there is a situation where there is no cyclical unemployment, that is, there are the most favorable conditions for employment. Natural rate of unemployment equal to the unemployment rate at full employment.

Potential GDP is GDP at full employment, usually greater than actual GDP. The difference between potential and actual GDP is called lagging behind GDP, and the ratio of this difference and potential GDP is the percentage lag of GDP. Okun's law : if the actual unemployment rate exceeds its natural rate by 1%, then the GDP percentage lag is approximately 2.5%. Okun's curve reflects the dependence of actual GDP on the unemployment rate.

Okun's curve
5. Inflation: essence, types, measurement of inflation. Causes and mechanism of inflation. Sources of inflation: supply and demand inflation. Relationship between inflation and unemployment. Phillips curve.

Inflation - macroeconomic rise in the price level. In essence, inflation means a decrease in the scale of prices, the depreciation of banknotes.

Inflation leads to a redistribution of property and production resources, destroys long-term credit, undermines the conditions for the implementation of investment projects, slows down technical innovation and, ultimately, slows down economic development.

Inflation differs according to the following main criteria:

1) in depending on the size of state regulation:

open inflation - inherent in countries with a market economy, characterized by an imbalance between aggregate demand and supply, a constant increase in prices, the operation of the mechanism of adaptive inflationary expectations;

suppressed inflation - inherent in countries with a command economy, characterized by the establishment of strict control over prices and incomes, temporary freezing of prices and incomes, constant shortage of goods and services.

Suppressed inflation is more dangerous: if open inflation deforms the market, then suppressed inflation destroys it.

2) depending on the level of price growth rate:

moderate inflation when prices rise by less than 10% per year, the purchasing value of money is maintained, there is no risk of signing contracts;

galloping inflation – average annual price growth rate of 10% - 100%; money loses its value; dangerous for the national economy and requires anti-inflationary measures, predictable but not controllable;

hyperinflation - prices are growing rapidly (more than 100% per year, the discrepancy between prices and wages becomes catastrophic, the national economy is collapsing, the level of well-being is falling, distrust of money, as a result of which there is a transition to barter exchange. It is impossible to do business;

3) depending from the degree of balance of price growth:

balanced inflation - the prices of different commodity groups relative to each other remain unchanged; not terrible for business;

unbalanced – the prices of different commodities vary in relation to each other in different proportions.

4) depending on the degree of predictability:

expected – predicted and predicted in advance, which allows to prevent or reduce losses;

unexpected - leads to a decrease in all types of fixed income and a redistribution of income between creditors and borrowers;

The state of the economy, which is characterized by a simultaneous increase in prices and a decrease in production, is called stagflation ;

5) depending on the factors causing inflation:

demand inflation - when "too much money is hunting for too few goods";

supply inflation - the rise in prices provoked by the growth of production costs in the conditions of underutilization of production resources.

Consumer price index (CPI)- the ratio of the cost of the consumer basket in the prices of the year under study to its value in the prices of the base year. Any year can be chosen as the base year. So, the CPI is calculated as the ratio of the value of the consumer basket in the current year to the value of the consumer basket in the base year.

CPI is calculated by type Laspeyres index

Level (rate) of inflation is the relative change in the GDP deflator, measured in decimals or percentages:

Where D 1, D 2 are the old and new values of the deflator, respectively.

If two successive periods of time are given, then the inflation rate for the total period of time is equal to:

RI \u003d (RI 1 +1) * (RI 2 +1) -1,

Where R.I. 1, R.I. 2 – inflation rate, expressed as a decimal fraction on the 1st and 2nd interval, respectively.

If the number of gaps is n, and the inflation rate for each of them is equal to R.I. 1 , then the inflation rate over the total period of time is equal to:

RI \u003d (RI 1 +1) n -1.

If the value R.I. 1 is small, then the inflation rate is approximately equal to R.I. 1 =n*RI 1 .

"Rule of magnitude 70" allows you to roughly determine the number of years required to double the price level at a constant low level of annual inflation:

However, if the annual inflation rate exceeds 30%, then this method gives a significant error.

Real interest rate (r) is the percentage increase per year in the purchasing power of the amount on the term deposit. It depends on the rate of interest, which in this case is called nominal (i) and annual inflation rate ( R.I.):

If the inflation rate is negligible, then the real interest rate is approximately equal to the difference between the nominal interest rate and the inflation rate: r = i R.I..

If the inflation rate exceeds the nominal interest rate, then the purchasing power of the amount withdrawn from the term deposit at the end of the year is less than the purchasing power of the invested amount, while the real interest rate is negative.

Phillips curve - graphic displaying the inverse relationship between the level inflation and level unemployment.

named after English economist Alban Phillips, which, based on empirical data on England per 1861 -1957 brought out years correlation dependence between the unemployment rate and the change in monetary growth wages.

The dependence initially showed the relationship of unemployment with changes in wages: the higher the unemployment, the lower the increase in money wages, the lower the growth prices, and vice versa, the lower unemployment and higher employment, the greater the increase in money wages, the higher the rate of price growth. Subsequently, it was transformed into a relationship between prices and unemployment.

In the long run, it is a vertical line, in other words, it shows the absence of a relationship between the inflation rate and the unemployment rate.

 ? - inflation rate,

 ? e- expected rate of inflation,

 ( U ? U e) - deviation of unemployment from the natural rate - cyclical unemployment,

 b> 0 - coefficient,

 v- Supply shocks.

6. Socio-economic consequences of inflation and anti-inflationary policy.
Considering the socio-economic consequences of measures to save public funds, it should be noted that the expected economic effect from their implementation does not exceed 1.7% of the federal budget expenditures. At the same time, the mechanical reduction in the number of public sector institutions, accompanied by the release of a significant number of civil servants, entails disproportionately higher costs, including the need for employment and social protection of public sector employees who are being laid off, as well as serious problems with ensuring proper quality government controlled, education and healthcare. An increase in the workload for each of the employees who remain on the federal budget will not be accompanied by an increase in their payroll funds, as a result of which the outflow of the most qualified personnel employed in the public sector to the business sector will continue. In the long term, this process will inevitably lead to further degradation of the average and higher education, the deterioration of the quality of mass medical care, the destruction of established scientific schools and teams, the general decrease in the cultural and intellectual potential of society.
The government's anti-inflationary program includes reducing the budget deficit, reducing defense spending, selective subsidizing of enterprises, and stabilizing the ruble exchange rate. In order to protect the Russian economy from a massive influx Money from the former Soviet republics in July 1993. the currency reform was carried out. Privatization and demopolization is needed as a means of increasing the role of competition, which limits the ability of monopolists to inflate prices.

Aggregate demand and factors determining it. Aggregate supply and factors determining it. Macroeconomic equilibrium AD-AS Ratchet effect.

Aggregate demand (AD) is the real volume of GDP that households, firms, the state and exporters are ready to buy at a given price level, i.e. AD=C+I+G+X n. Negative slope AD determined price factors :

1)interest rate effect-as the price level rises, interest rates, and they lead to a reduction in consumer spending and investment. This, in turn, causes a reduction in demand for the real volume of the national product: P i I , FROM  GDP;

2) wealth effect, or real cash balances - with an increase in the price level, the real value of material assets (for example, money in time accounts, bonds with a fixed value) decreases and, therefore, the population will reduce their consumer spending: P C  GDP ;

3) effect of import purchases- an increase in the price level within the country with stable import prices leads to a decrease in aggregate demand for domestic goods (services) and to a reduction in exports: P Exp xn GDP .

Curve shifts AD occur under the influence non-price factors : a) changes in consumer spending: income growth, consumer expectations, consumer debt, income tax; b) changes in investment spending: interest rates, expected return on investment, tax rate, technical level of production, level of capacity utilization; in) changes in government spending caused mainly by a political decision of the government of the country; G) changes in net exports: the dynamics and level of income in the country, changes in the exchange rate, political decisions.

Aggregate supply (AS) is the real GDP that can be produced at a given price level. Curve AS has a positive slope. It consists of three segments:

horizontal (Keynesian) when the national product changes and the price level remains constant;
vertical (classic), when the national product remains constant at the level of "full employment", and the price level can change;
intermediate when both the real volume of national production and the price level change.

On the nature of the curve AS influenced by price and non-price factors. Price Factors change the volume of aggregate supply (movement along the curve AS), non-price ones lead to a shift in the curve AS.

Non-price factors AS : a) level of production technology; b) change in prices for resources; in) labor productivity; G) changing business conditions; d) change in the structure of the market.

The condition of macroeconomic equilibrium : AD = AS AD =Y, where Y is the income of society. At point E - macroeconomic equilibrium, with the equilibrium price level (P E) and the equilibrium volume of GDP (Q E). Types of macroeconomic equilibrium (Fig. 5.1).

Types of macroeconomic equilibrium:

a- in the middle AS; b- on the Keynesian segment AS;

in- on the classic line AS
Ratchet effect based on the fact that prices rise easily, but fall with difficulty. Therefore growth AD raises the price level, but when AD a fall in the price level cannot be expected within a short period of time. The ratchet effect causes the curve to shift AS up.
8. The function of household consumption and savings. Firms' investment spending. Equilibrium of the commodity market according to Keynes. Animator models. Autonomous spending multiplier. The paradox of thrift. Accelerator. inflationary and deflationary gap.

Commodity market of the country (market of goods and services) is the central link of macroeconomics.

J. M. Keynes singled out the ideal and real functions of household consumption.

Ideal: C = Y(rarely used in practice).

In real life, the population spends only part of their income on current needs. That's why real consumption function written in two forms:

Long term: C \u003d MPC * Y;

Short term: C=C 0 + MPC*Y,

Where FROM 0 – autonomous consumption , independent of income characterizes the minimum level of consumption required by people. In the absence of income, people will borrow or reduce the size of the property.

MRS– marginal propensity to consume shows how much household consumer spending will increase with an increase in income by one monetary unit: , and 0
Saving (S) – household income minus consumption:

S = Y-C.

Saving features:

short term: S= -C 0 +MPS*Y;
long term: S= MPS* Y,

where MPS– marginal propensity to save shows how much household savings will increase with an increase in income by 1 monetary unit:

, and 0MPS+MPS=1.

Consider assumptions the simplest Keynesian model.

1. The state and the outside world are absent, then the total expenditure (E) consists only of consumption and investment ( E=C+I).

2. Investments are autonomous, i.e. do not depend on income I 0 ).

3. Consumption is a linear function of disposable income, i.e. MPC=const: C=C 0 + MRS *Y,

Keynesian equilibrium condition consists in the equality of income to total expenses (Y=E): Y=C+I, i.e. Y \u003d C 0 + MPC * Y + I 0. Solving this equation for Y, we get the equilibrium income:

Where is a simple multiplier, and  >1,

BUT 0 = I 0 +C 0 - independent expenses.

The equilibrium income is equal to the product of a simple multiplier and autonomous expenses.

Autonomous spending multiplier (a simple multiplier) is a numerical coefficient showing how much the equilibrium national income (or GDP) will increase with an increase in autonomous spending.

If there is an increase in investment, then the equilibrium income will increase by an amount that in  times more than the increase in investments, i.e.  Y= *  I.

On fig. 5.2, the initial equilibrium is shown by the intersection point of the bisector and the graph of the total cost function (point A). This representation of macroeconomic equilibrium is called Keynesian cross. With the growth of investment expenditures, the equilibrium shifted to point B. The richer the country, the smaller the consumed share of the additional ruble of income (MPC), the closer the increase in income to the increase in investment, the weaker the multiplier effect.

The simplest Keynesian model
From the simplest Keynesian model, it follows that in order to bring the economy out of recession, an increase in investment spending should be stimulated.

The more MRS, the greater the multiplier. The higher the MPS, the lower the multiplier. The more we save, the worse it is for the housekeeper. This is the paradox of thrift.

The Paradox of Thrift is that an increase in household savings leads to a reduction in personal consumption and the equilibrium income of society. It can be overcome by investing savings in the national economy.

Accelerator (V) characterizes the ability of the economy to develop (how much of the increase in income the economy can direct to expansion).

- complex multiplier,

The increase in equilibrium income exceeds the increase in investment (or government purchases, or both) that caused it, and the ratio of these increases is equal to complex multiplier .

A complex multiplier is less than a simple one, i.e. the imposition of taxes weakens the multiplier effect. This is shown by the decrease in the slope of the total expenditure curve with an increase in the tax rate.

Balanced budget multiplier is equal to the ratio of the increase in income to the equal increase in government purchases that caused it and tax revenue. The balanced budget multiplier is equal to one.

Where  X – simple foreign trade multiplier.
The increase in equilibrium income exceeds the increase in investment (or exports, or both) that caused it, and the ratio of these increases is equal to simple foreign trade multiplier .

inflationary gap occurs when I > S, that is, investment exceeds savings corresponding to the level of full employment. This means that the supply of savings lags behind investment needs. Since there are no real opportunities to increase investment, the size of the aggregate supply cannot grow. The population spends most of their income on consumption. Demand for goods and services is growing, and due to the multiplier effect, growing demand puts pressure on prices in the direction of their inflationary increase.

deflationary gap occurs when S > I, i.e. savings corresponding to full employment levels exceed investment needs. In this situation, current spending on goods and services is low, as the population prefers to save most of their income. This is accompanied by a decline in industrial production and a decline in employment. And the multiplier effect that comes into force will lead to the fact that the reduction in employment in one or another sphere of production will entail a secondary and subsequent reduction in employment and income in the country's economy.

Effects of inflationary and deflationary gaps

Essence and functions of finance. The budget system of the Russian Federation. State budget of the Russian Federation and its structure. The problem of balancing the budget. Budget deficit, public debt, methods of its repayment.

The state budget represents the structure of expenditures and revenues of the state, approved by law. Government revenue consist of tax and non-tax revenues, government loans and receipts from off-budget (target) funds. Government spending consists of the cost of social policy, national defense, law enforcement and state security, education, industry, energy, health and physical culture, basic research and promotion of scientific and technical progress, Agriculture and fisheries, international activities and others.

The state budget of any country must be balanced: state revenues must equal expenditures. In real life, a balanced budget is rarely achieved. During economic downturns, government spending exceeds revenue ( budget deficit), during the boom period, revenues exceed expenditures ( budget surplus).

Types of budget deficit:

primary deficit– the difference between the total (actual) deficit and the amount of interest payments on the debt;
structural deficit- the excess of government spending over taxes in conditions of full employment;
cyclical deficit is the difference between the actual budget deficit and the structural deficit.

The accumulated budget deficit over several years is called public debt . Distinguish between internal and external public debt. domestic public debt are debt obligations of the government of the Russian Federation to legal and individuals. External public debt- debt to foreign states, organizations, individuals.

Ways of financing public debt within the country:

monetization (issue of new money);
government loans(issue and sale of government securities).

Government loans are less dangerous than issuing money, but they also have a negative impact on the country's economy. First, the government resorts to forced placement of government securities; secondly, government loans, by mobilizing free funds in the loan capital market, narrow the opportunities for obtaining a loan for small and medium-sized firms (as the interest rate on loans rises).

Ways to repay the public debt:

at the expense of the gold and foreign exchange reserves of the Central Bank;
consolidation of external debt - the transformation of short-term and medium-term debt into long-term, i.e. postponing payments to a later date. Special clubs are created for this: the London Club (an association of creditor banks), the Paris Club (an association of creditor countries);
conversion of external debt - the transformation of debt into long-term foreign investment. On account of the debt, foreign creditors are offered to purchase real estate in the debtor country, participation in capital, rights;
appeal to international banks (World Bank, European Bank for Reconstruction and Development) to obtain emergency (concessional) financing.

Resident and non-resident institutional

The balance of the national economy, its history and features of formation

Stages of development and structure of the system of national accounts

Resident and non-resident institutional units

The subject and features of macroeconomics

Topic 2. The system of national accounting

Division economic theory on macro- and micro- to denote areas of the economy has become generally accepted since the mid-30s. 20th century. This is largely due to the publication of the work of a major English economist and statesman John Maynard Keynes entitled " General theory employment, interest and money. He is considered the founder of the science of macroeconomics.

The concept itself "macroeconomics" associated with Greek words:

- "macro" (means large, large, long);

- "economics" (means "the art of management").

Macroeconomics as an integral part of economic science, it deals with major economic problems, including such as the size of the national economy, its structural components, the economic cycle, employment, inflation, economic growth, finance, and others.

Macroeconomics has its own characteristics:

- in microeconomics, mathematical models are often used that express the relationship between various economic variables;

- in macroeconomics, microeconomic analysis is used, because macroeconomic processes are formed as a result of the interaction of many firms;

- macroeconomics uses aggregated indicators;

- in macroeconomics, time lags are taken into account - periods of time separating the moment of investment and the moment of receiving a return.

National economy acts as a set of all national units – residents, which include economic units that operate in a given territory for more than a year. In the number of residents include territorial enclaves - embassies, scientific and military bases located in other countries. Non-residents(extraterritorial enclaves) - foreign diplomatic and other official representations located in the country, as well as international organizations, their branches and representative offices.

Various aspects of economic activity in the aggregate of resident institutional units are presented as institutional sectors. Usually The SNA distinguishes four categories of internal sectors and one external.

the first are non-financial enterprises that perform the function of producing material goods and services of a non-financial nature, mainly at the expense of resources from sales proceeds.

Households make up second sector. The main function of these resident units is consumption. The main resources of households are formed from wages, income from property, inheritance, transfers from other sectors.

Third sector- sector public institutions, and in the terminology of the UN SNA, the sector of producers of public services, includes institutional units that provide services that are not sold for money, for which there is no market. They perform the function of producing non-commodity services, as well as the redistribution of national income and national wealth.

The main resources of this sector consist of taxes, social payments received from other units directly or indirectly (for example, in the form of public subsidies).

Fourth sector- the sector of financial institutions, covers institutional units that carry out financial transactions. The main resources of their activities are formed from funds formed as a result of accepting financial obligations (cash deposits and interest, shares, bonds, long-term state funds, and others).

In addition to the internal sectors, the SNA has one external - sector"rest of the world" or abroad. This includes resident units that operate outside the country.

Residents are considered to be all economic units (enterprises, households), regardless of their nationality and citizenship, having a center of economic interest in the economic territory of a given country (engaged in production activities or living in the country for at least a year).
Thus, in contrast to geographical territory, the concept of economic territory has been introduced, which does not include territorial enclaves of other countries (military bases, embassies, etc.), but contains country enclaves located on the territory of other countries.
However, not all employees of the economic units of the country are its residents. Therefore, part of the value created in the country is paid to non-residents for their participation in the production of GDP. In turn, residents of a given country can receive part of their income from abroad for their participation in the production of the GDP of other countries, for example, in the form of wages, property income (interest, dividends, etc.). Therefore, there is a difference between in which country it is created and in which country the national product belongs. For example, part of the national product created by guest workers is paid in the form of wages and then divided into two parts: one is consumed in Russia for the purchase of goods and services, and the other is exported to their homeland.
Judging by where this product was produced, it is included in the national product of Russia. And if you ask yourself which country the corresponding goods belong to and by whom they will be consumed, then you should name the country where the worker came from.
To account for these two important approaches to the national product, two different measures are used - GDP and GNI. GDP answers the question of where a product is created, and GNI answers the question of which country it belongs to. Accordingly, both indicators are interrelated, namely GNI = GDP + balance of income from abroad.