ECONOMICS

Economics

Economics

Construction Workers and National Income Accounts

Construction activities are the domestic investment that contributes in raising the national income of the company. Mainly, the construction income comes under the head of domestic investment. The central object of macroeconomic analysis is the country's gross national product (GNP) - the value of all final goods and services produced by its factors of production and sold in the market for a certain period. GDP - the main indicator, the studied macroeconomists, is calculated by adding the market value of all costs on the final release. Therefore, GDP includes the value of commodities such as bread sold in supermarkets, books sold in the bookstore, as well as the cost of services provided by supervisors and packers supermarket and university professors. Because the products cannot be made without the participation of the factors of production, the cost components of GDP, which is closely related to the use of labor, capital and other factors of production (Daron, 2009: 35-68).

To distinguish between different types of costs included in the GNP of the country, economists and statisticians of public institutions that make up the national income accounts, GDP is divided into four possible goals of, in the name of which is bought in the country manufactured products: 1) consumption - the amount of products consumed by residents country, 2) Investments - amount of product accumulating private firms to build new plants and equipment for a future production, 3) public procurement - the number of products used by the government and 4) current account balance - the value of net exports of goods and services to foreigners. For a description of a four-classification uses the term "national income accounts," but not "account of the national output," because the national income is equal to its actual release. Thus, the national income accounts classify each deal contributing to the creation of national income, according to the type of expenditure, which ensure growth. In Fig. 1.13 shows how the U.S. GNP in 1991 was distributed among four of his sostavlyayuschimi1.

Why is it useful to divide the GNP on consumption, investment, government procurement and the current account balance? One of the main arguments in favor of such a division is that it is impossible to understand why a particular recession or boom, not knowing how to change the main items of expenditure. And without such an understanding can not give advice on sensible policy responses. In addition, the national income accounts provide information essential to study the reasons why some countries are rich, that is, have a high level of GDP relative to the size of the population, while others - are poor.

Why might economic activity periodically fluctuate in cycles?

The world economy has experienced several periods of oscillations (cycles), which are represented in a crisis or economic stability, so that has seen the need for a detailed analysis of the behavior of the rise or fall in economic activity.

For clarity of this definition, we can address that in order to establish new theoretical arguments on ...