Key Macroeconomic Indicators and National Accounting Terms

Value Added (VA)

The difference between a company's production value and the cost of intermediate products purchased from its suppliers. It serves to reward the productive factors utilized in the business.

GDP at Market Prices

The market value of all final goods and services produced within an economy over one year.

National Income (RN)

The sum of the remuneration of production factors owned by nationals over a period of time, usually one year. It coincides with the Net National Product (NNP).

Personal Income (RP)

The income received by families, excluding taxes that must be paid.

Disposable Personal Income (RPD)

The income available to families to spend freely after paying taxes.

Labor Income

Includes salaries and social security contributions paid by the company.

Gross Operating Surplus (EBE)

Calculated as VA - Labor Income. It represents the remuneration of land and capital factors, including property and business income.

Taxes and Subsidies

• Taxes on production: Taxes that affect the consumption of individuals.
• Import taxes: Taxes levied on the price of foreign products.
• State subsidies: Financial aid provided to companies to ensure products sold in the market do not exceed a certain price.

Transfers

• Current transfers: Receipts and payments made between operators without a direct counterpart, such as income taxes, social security contributions, and social benefits.
• Capital transfers: Grants or aid provided by the state to companies intended for investment.

Capital Depreciation

The loss of value of capital due to use, the passage of time, or obsolescence. It is calculated as the amortization of capital over a period of time.

Aggregate Demand

The total expenditure made by various operators to acquire goods and services.

Components of Demand

• Private consumption: Expenditure by families on goods and services for everyday use.
• Public consumption: Expenditure, investment, and purchase of goods and services by the public sector.
• Private investment (Gross Capital Formation): Capital goods that help maintain and expand a country's productive capacity. Includes family investment, business investment, and inventory changes.
• Exports: Sales of goods and services to other countries.
• Imports: Purchases of goods and services produced abroad.

Macroeconomic Formulas

• Internal vs. National Magnitudes: GNP = GDP + RFE - RFN
• Net vs. Gross Magnitudes: GDP = PIN + Depreciation
• Factor Cost vs. Market Prices: GDP_mp = GDP_cf + Taxes - Subsidies