Calculating GNP by revenue

In this case, GDP is considered as the sum of revenueof owners of resources, i.e. as the sum of factor income [4, p.140].

Factor revenues are:

Wages and salaries of employees of private firms, i.e. payment for labor and all forms of remuneration.

• rent or rent - income from factor "land" and includes payments received by property owners.

• Interest payments, which are capital gains, the cost of use of capital used in production.

• revenue, that is income from factor 'entrepreneurial skills. "

In addition to factor income, the GDP calculated by the income stream includes two elements that are not income owners of economic resources. Indirect taxes on business - a general sales tax, excise taxes, license fees and customs duties. Another element to be considered in the calculation of GDP by income is depreciation, as it is also included in the price of any commodity.

The calculation of GNP "value added"

- With this method, the calculation of GNP must sum of value added by all sectors and industries in the economy. An objective analysis of the economy is possible only with a stable (or comparable) price level. Analysis of the price level is necessary in order to:

- - To know whether there have inflation or deflation,

- - Reduced to a single base heterogeneous component of total production.