The gross domestic product (GDP) is the total money value of all final goods produced in the domestic economy over a one-year period. The GDP can be measured in three ways: (a) the sum of the value added[17] in the production within a year, (b) the sum of incomes received from producing the year's output, (c) the sum to spend on the year's domestic output of goods and services.

The total money value of all final goods and services in an economy over a one-year period, that is the GDP, plus property income from abroad (interest, rent, dividends and profits) make the gross national product (GNP). The GNP is an important measure of a country's economic well-being, while the GNP per head provides a measure of the average standard of living of the country's people. However, this is only an average measure of what people get. The goods and services available to particular individuals depend on the income distribution within the economy.

We now recognize that assets wear out in the production process either physically or become obsolete. This process is known as depreciation. There has to be part of the economy's gross output to replace existing capital, and this part of gross output is not available for consumption, investment, government spending, or exports. So we subtract depreciation from the GNP to arrive at national income.

National income measures the amount of money the economy has available for spending on goods and services after setting aside enough money[18] to replace resources used up in the production process.

Since output is determined by demand, the aggregate demand or spending plans of households and firms determine the level of the output produced, which in turn makes up the income available to households and firms. Aggregate demand is the amount to be spent by firms and households on goods and services.

Governments also intervene in the circular flow of income and payments. They buy a considerable part of the total output of goods and services in an economy adding their demand to the demand of the private sector. Since government spending is a large component of aggregate demand, and since taxes affect the amount households and companies have for spending, government spending and taxation decisions, which are referred to as[19] fiscal policy, have major effects on aggregate demand and output.

Словарный минимум к тексту

whole adv целый

as a whole – в целом

household и (условная) семья

gross domestic product (GDP) – валовой внутренний продукт (ВВП) (денежная стоимость всех товаров и услуг, произведенных в хозяйстве за определенный период)

gross adj Валовой; совокупный

domestic adj внутренний; отечественный; местный

final goods – готовые изделия, готовая продукция

measure v измерять

measure и мера, показатель, измерение; система мер

way n образ действия; метод; способ

a way of doing smth – способ, которым делается что-л.

in some way – каким-либо способом

property n собственность, имущество

abroad adv за границей, за границу

gross national product (GNP) валовой национальный продукт (ВНП) (ВВП плюс проценты, прибыли и дивиденды, полученные из-за рубежа)

while cj в то время как

average adj средний

standard of living; living standard жизненный уровень

however adv однако, тем не менее

distribution n распределение

assets и фонды; имущество; активы

wear out (wore, worn)v изнашиваться

depreciation n 1. износ (оборудования), амортизация; 2. снижение стоимости; обесценивание