Abstract Gross Domestic Product is the most important economic variable, and therefore much time and efforts are dedicated to its studies. In this paper I will analyse the determinants of the national income, its distribution to the factors of production, the determinants for good and services, and the factors which bring the supply and demand for goods and services into equilibrium. List of Content: 1. Definitions 2. Determinants of National Income 3. Distribution of National Income to the …showed first 75 words of 2855 total…

…showed last 75 words of 2855 total…demand raises the interest rate, and the quantity of investment will be increased only in the case when the higher interest rates encourage additional saving. <Tab/> References: Braun, G.-H.(2003).Possible Means of Encouraging Development :Mobilisation of Saving Capital in Third World Countries. Washington, D.C: Center for International Private Enterprise Mankiw, N.G. (2000).Macroeconomics. New York: Worth Publishers Parkin,M., Powell,M., Matthews,K (2000).Economics. Harlow, England: Pearson Education Limited.