UNIVERSITY OF PRISHTINA

FACULTY OF ECONOMICS KOSOVSKA MITROVICA

ESSAY

MACROECONOMIC AGGREGATES

Teacher: Student:
Prof. Nataša Lukić Ibrahim Ferizi 26/17

Kosovska Mitrovica, 2018.

 MACROECONOMIC AGGREGATES

Macroeconomic aggregates are certain economic size of a national community expressing its
production capabilities (total material and subjective resources), as well as the results of
business. Aggregates expressing economic resources and the overall conditions of production
(the volume and structure of the available means of production, the extent and the professional
and qualification structure of the working-age population, the achieved level of labor
productivity, the possibilities of its lifting, etc.) represent the potential results of social
production. The actual results of the functioning of the national economy as a result of the use
of economic potentials are presented as the corresponding products and services that appear on
the market, in which they receive their valuable expression and as such are aggregated (at the
level of the national community), they are expressed and expressed through certain indicators
of the volume and structure of the realized production and its intended distribution.

Macroeconomic analysis deals with the total size at the national economy level or the aggregate
expressions of individual activities of business entities. It is therefore necessary to know the
concepts of macroeconomic aggregates. Macroeconomic aggregates represent the product of
abstract human thinking, which, in a simplified, condensed and useful way, shows a complex
economic reality. The term aggregate comes from the Latin word aggregatum, which means
the group formed by the union of the same or different constituent parts.

In an economy, a wide variety of products are produced over the course of the year, traded in
different types of goods and are offered the most diverse services. In order to quantify and
quantify all the results of production, economic science, that is, macroeconomics as a part of
it, has developed the whole system of so-called macroeconomic aggregates - a system of certain
global and synthetic indicators that express the basic contents, dynamics and structure, as well
as the results of economic activity in to a country or a social community. The objective of
macroeconomic aggregates is the quantitative expression of the value of social production in
order to be able to analyze and consider, plan and compare with the results of other economies.

For the needs of its analysis, macroeconomics has developed a large number of macroeconomic
aggregates, each of which, depending on the method of calculation and its structure, is an
indicator of the results or structure of the results of the economic system. Some of the

1
aggregates focusing on macroeconomic studies are the unemployment rate, inflation rate,
payroll and trade balance, total investments, total consumption, state budget, foreign exchange
reserves, domestic and external debt, etc. However, the most used macroeconomic aggregates
are: social gross product, social product and national income.

Although some of the macroeconomic aggregates used today are mentioned as early as the 17th
century, their significant use in macroeconomic analysis began only after the Great Economic
Crisis, that is, the thirties of the 20th century.

The basic macroeconomic agregats are:

1. Gross social product,

2. Social product and
3. National income.

Gross social product - represents the total quantity of goods and services produced during the
period of one year. The difference between gross social product and gross domestic product is
equal to the difference between imports and exports. Gross domestic product is also called in
english GDP.

Social product - represents the gross social product, which is reduced for the costs of material
production or reproduction.

National income - as elsewhere in english is called per capita, is a part of a gross social product,
that is, a social product, which represents the total newly created value in the field of material
production in one country for a certain period.