NATIONAL ECONOMY, GOALS, STRUCTURE AND RESULTS, National economy and its main goals, Elements of the national economy - Macroeconomics

NATIONAL ECONOMY, GOALS, STRUCTURE AND RESULTS

Developed competencies:

know

• the main parameters of the functioning of the national economy and the methodology for calculating them;

be able to

• Calculate the most important macroeconomic indicators;

own

• the skills of generalizing macroeconomic information on the effectiveness of the functioning of the national economy;

• The skills of forecasting the development of the national economy in the future.

National economy and its main goals

Elements of the national economy

By the national economy understand the totality of all economic processes taking place in the society on the basis of the property relations and organizational forms existing in it.

The national economy is a relationship of production conditions and its results and is formed as a single economic organism with interconnected internal processes, as a single economic system of the country. Being a single economic organism, the national economy is characterized by a complex structure with various hierarchical subsystems of macro, meso and microlevel. These structures are usually distinguished by functional, sectoral and territorial features.

According to the functional approach, the national economy as a whole system consists of functional economic systems (FES).

FES - a set of institutions and organizations that form self-regulation mechanisms that ensure the maintenance of a balance around certain macroeconomic parameters for sustainable and dynamic economic development.

Each FES consists of government bodies, public organizations and various associations, private commercial structures, etc. Most of the FES are in a hierarchical relationship, since the result of the activity of one FES can be included as a component in the activities of another. For example, the balance of the state budget directly affects the parameters of public debt. In a market economy, the most important FES include:

- the system that regulates the level of inflation;

- a system for forming a competitive environment and protecting the domestic market from foreign competition;

- a system that ensures the balance of the state budget;

- system of formation and use of gold and foreign exchange reserves;

- a system that ensures the inflow and movement of capital;

- the system of social protection of the population;

- a system that regulates the parameters of internal and external debt;

- an environmental protection system.

The current structure of the national economy is the result of the development of a general division of labor in production. According to modern concepts, the main structural division of the national economy is the industry.

By industry is understood the totality of enterprises and organizations performing the same functions in social and economic content (for example, industry, construction).

A group of homogeneous industries forms the sphere of the national economy. For example, the groups of industries in which a product is created are commonly referred to as the manufacturing sphere. or the real sector. In connection with This, when using the sectoral approach in the national economy, is allocated material and non-material production (Figure 2.1).

The structure of social production of the national economy

Fig. 2.1. The structure of social production of the national economy

The territory of each country has its division. For effective management it is customary to represent it as a hierarchically co-ordinated administrative-territorial division (LTD) system, in which each unit of a lower rank is part of a larger territory. Such a system allows the government to lead the whole country. To identify differences in the conditions of management, zoning, takes into account not only the natural conditions of a particular territory, but also the ethnic and cultural characteristics of the population living within the boundaries of these territories. It is necessary to avenge that no ADT or zoning is not something frozen, and once and for all data, under the influence of changing political and socio-economic conditions, it is also changing, adapting to new challenges and needs of the national economy. An example is the division of the United States into federal districts, the number of which was seven at the time of their establishment in 2000, and now eight.

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