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