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GNP
definition calculation
Gross National Product
DEFINITION
the total market value of all final products produced by the resources of the economy during a specified period of time
•Excludes products not produced by the
resources of the economy as imports
LIMITATIONS
•Only includes those products that can no longer be used for higher stages of
production
LIMITATIONS
•time
LIMITATIONS
CALCULATION
Income THREE
APPROACHES
Expenditure
Production
" All expenditure incurred by individuals
during 1 year . "
EXPENDITURE
GNP= C+I+G+(X-M)
EXPENDITURE
consumption
investment
government spending
net exports
" sum total of incomes of
individuals living in a country
during 1 year ."
INCOME
GNP= R+I+P+SA+W
INCOME
rents
interest
profits
Stat.adj.
wage
also called as Net Product or
Value added method
PRODUCTION
GNP= A+I+S±NFY
PRODUCTION
agriculture
industry
services
Net factor income
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