Gross National Product (GNP), economic indicator used extensively in bourgeois statistics; it expresses, in market prices, the aggregate value of the final output of material production and the non- productive sector. In its natural material form the GNP represents the aggregate of material benefits and services consumed or used for capital investment in a year. It differs from the index of the final social product used in the statistics of socialist countries by the amount of the value of services. The GNP indicator can be calculated in two ways: a) according to the realisation ( utilisation). In this case, four component parts of the product are considered: individual consumption (goods and services bought by the people); state consumption (state purchases of goods and services); capital investment (reserves of raw materials, semi-finished and finished products included), and the foreign trade balance; b) according to output—as aggregate net output (added value) of individual industries. Added value is calculated by subtracting the value of consumed materials, fuel, electricity, services, etc. from the gross industrial output. The result, which represents the aggregate net product and depreciation payments, is subsequently corrected against the balance of foreign trade operations. Since the GNP is calculated in market prices which include indirect taxes, these taxes are also included in the GNP index. The GNP is initially calculated in current prices and then converted into constant prices. Bourgeois statisticians calculate the national income by subtracting the amount of depreciation payments from the GNP. According to this unscientific method, the value of the GNP represents the aggregate income obtained by individuals, enterprises and institutions irrespective of the sphere of application of means and labour. Therefore, also 152 included in the GNP are the incomes obtained by redistributing the newly created value. For example, the cost of services provided by banks and other credit agencies, legal offices, the administrative apparatus, etc., expressed in money, as well as activities of the armed forces assessed in a like manner are seen as part of the GNP. Bourgeois statistics also operates with conventional indicators, incorporating in the GNP, for example, temporary housing rent, i. e., a conventional sum of money the house owners would have had to pay had they rented them.
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