What is the main conceptual difference between GDP and GNP? How different are GDP and GNP...

What is the main conceptual difference between GDP and GNP? How different are GDP and GNP for the United States? For countries with many citizens who work abroad?

Expert Solution

Difference between GNP & GDP

1- Meaning

GNP - Gross national product- it takes into account net income receipt from abroad.

GDP- Gross domestic product- its a measure of national income,output and expenditure produced in a particular country.

2- Calculation-

GNP- Its used to calculate the total value of goods and services produced by the residents of a country whether they are living abroad.

GDP- It is used to calculate the total value of goods and services produced within country's borders.3- Indicator

Gnp indicates how its national income are cintributing to tge country's economy

Gdp indicates of local and national economy.

The US abondoned GNP in 1991,and adopted GDP as its measure to compare itself with other countries as GDP is most commonly used by global economies.it is the most basic indicator used to measure to overall health,size of the economy and keep a check whether the economy is growing or contracting.

Rahul Sunny answered 2 years ago

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