Page 29 - Azerbaijan State University of Economics

N.Akimov., S.Baizakov., A. Oinarov., E.Utembayev: The analysis of the macroeconomic
dynamics and assessment of smart factors’ inputs to the balanced growth rates

In this law, the cost of the output of goods and services enables revealing the
macroeconomic origin of the macroeconomic indicators. According to this law, the
cost of the output of goods and services is formulated as the sum of overall
expenditures of materials, labor and capital and the final product, defined according
to costs, is equal to the nominal GDP.
Under the material costs, the replacement of interim materials is meant. Also,
under this item, the replacement of other current resources, used in the production of
goods and services is meant. Under the labor, rewarding of labor costs of hired work
force is meant; and lastly, under the capital – rewarding of the drawn main capital is
meant, in this context [Emerson, G.].
As is known, in the process of the exchange of goods and services at the
macroeconomic level, the technological line in the cycle of interchangeability of
physical measurements of the commodity mass into monetary mass and, of them
both, in the reverse order, has clearly been observed.
Thus, we may accept the hypothesis, such that, the annual volume of goods
and services, realized by an enterprise, in nature of Kт of conditional units equals
the gross profit of KД.
In that case, the price of the good Цт = КД/Кт, and the profit from sales Х =
Цт* Кт. In this case, the velocity of money circulation by the denomination of the
national currency unit will be: vx, which is defined under the conditions of the
international consensus, according to the complete reproduction schemes of
Karl Marx:
Х= vx *М. (Formula 1)
Here:
, (Formula 2)

or
. (Formula 2а)

The hypothesis, as admitted, herewith, is accorded with that of J. Clark where
any output of goods is represented as the sum of the elementary utilities of materials
benefits that have been consumed for the purposes of production of the output of
goods sold.
Regardless of the opportunity to assess the effectiveness of the regulatory
policies‘ impact, according to the two dimensions measurements, following formulas
1-3, now, the analogous work is being undertaken by means of the techniques that
meet the requirements of one dimensional method of A. Smith. In this case, the
nominal GDP is defined by means of deducting the measurement of the cost of
materials expenditures (QP): NGDP = Х - QP from profit X. Formula 2, now,

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