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GDP (Gross Domestic Product) is a commonly used calculator of national income and measures the economic activity in a country. Essentially, the GDP is a figure which measures the value of the goods and services produced in a country in a given time period (usually one year).
GNP (Gross National Product) is also a calculator of economic activity. However, GNP also encompasses the value of net income made abroad. Moreover, when calculating GNP, the value of what foreign countries earn in the given country is subtracted from the value.
To clarify, let us use an example:
If a US business had a manufacturing plant located in China, any profit made by the plant would not be calculated in the GDP, but would be accounted for in the GNP.
If a Canadian business has a manufacturing plant located in the US, any profit made by the plant would be included in GDP, however it would be subtracted from the value of the GNP.
Consequently, those both GDP and GNP are measures of economic activities, the two values can be extremely different.
Remember, GDP concern is BORDER, whereas GNP concern is PRODUCER.
Read more at : http://financenmoney.in/the-key-indicators-of-economic-growth-gdp-gross-domestic-product-and-gnpgross-national-product/
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Is GDP a part of national income. which term is broder GDP OR National income..?
National income is a part of GDP. GDP is a broader term.
What are the 6 concepts of national income?
GDP
Value added in a nation equals A-the value of intermediate products B-the value of investment goods C-the difference between production and income or D-GDP?
GDP
What does GDP gap measure the difference between?
GDP Gap measures the percent difference in Real and Potential GDP
Which is used to measure directly the average standard of living across countries?
National income
Is GDP a part of national income. which term is broder GDP OR National income..?
National income is a part of GDP. GDP is a broader term.
What are the 6 concepts of national income?
GDP
Value added in a nation equals A-the value of intermediate products B-the value of investment goods C-the difference between production and income or D-GDP?
GDP
The GDP gap measures the difference between?
nominal GDP and real GDP.
What does GDP gap measure the difference between?
GDP Gap measures the percent difference in Real and Potential GDP
What is the national income in Germany?
The (PPP) per capita GDP of Germany is $34,212.
What is the gross national income in Germany?
The (PPP) per capita GDP of Germany is $34,212.
Indonesia national income GDP CPI 1998-2008?
1998 - $ 650 2008 - $ 2450
Which is used to measure directly the average standard of living across countries?
National income
How do economics measure the impact of technological progress on economic growth?
Economic growth is the increase of per capital GDP or other measures of aggregate income, typically reported as annual rate of change in real GDP. A variety of measures of national income/output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), & net national income (NNI).
What does the difference between these three countries' overall GDP rankings and per capita GDP rankings tell you?
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When WE will plus the total goods and services and summed up it is GNI or GDP?
It is called GNI(GROSS NATIONAL INCOME)
