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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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How do you calculate the GDP gap?
How to calculate potential gdp and natyral rate of unemployment?
How do you calculate GDP deflater?
GDP Deflator = Nominal GDP/Real GDP x 100.
How do you calculate the equilibrium level of GDP?
at the equilibrium level of GDP + formula
How do you calculate consumption as percentage of GDP?
if gdp is 719.1 and consumption is 443.8, how do i compute consumption as a percentage of gdp?
How do capital and human capital increases the GDP wealth and income of nations?
how do capital and human capital increase the gdp wealth and income of nations
How do you calculate the GDP gap?
How to calculate potential gdp and natyral rate of unemployment?
Does Austria has a gdp?
Yes. GDP stands for Gross Domestic Product, all nations have a GDP
How do you calculate percent change in normal GDP?
It is 100*(New GDP - Old GDP)/Old GDP
How to calculate the percentage change in real GDP?
[ (GDP 2006 - GDP 2005) / GDP 2005] X 100 ---- ----
How do you calculate GDP deflater?
GDP Deflator = Nominal GDP/Real GDP x 100.
How do you calculate the equilibrium level of GDP?
at the equilibrium level of GDP + formula
How do you calculate consumption as percentage of GDP?
if gdp is 719.1 and consumption is 443.8, how do i compute consumption as a percentage of gdp?
How do capital and human capital increases the GDP wealth and income of nations?
how do capital and human capital increase the gdp wealth and income of nations
- What is the expenditure approach to calculate GDP?
Gdp = c + i + g + (x - m)
How do you calculate the Import-GDP ratio?
it the ratio of between the total value of import and GDP
How do you calculate the percentage change in real GDP per capita?
Real GDP/Capita
How do you calculate deflation rate?
Real GDP is the GDP during your chosen base year, and nominal GDP is the GDP of the year on which you are focusing. The GDP deflator from 1990 to now (2013) is: GDP (2013)/ GDP (1990) * 100%
