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Macroeconomics:: Gross Domestic Product

GDP is the total market value of all goods and services produced within a country in a given period. GNP adds the value of goods and services produced by citizens of that country living abroad. NNP is GNP minus the amount needed to maintain existing capital, representing the amount available for consumption. National income is the total net value of all goods and services produced domestically over a period, including wages, profits, rents, interest and pensions paid to domestic residents.

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44 views2 pages

Macroeconomics:: Gross Domestic Product

GDP is the total market value of all goods and services produced within a country in a given period. GNP adds the value of goods and services produced by citizens of that country living abroad. NNP is GNP minus the amount needed to maintain existing capital, representing the amount available for consumption. National income is the total net value of all goods and services produced domestically over a period, including wages, profits, rents, interest and pensions paid to domestic residents.

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waqasfarooq75_396423
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Macroeconomics:

Gross Domestic Product:


The market value of all the goods and services which are produced with in a country in a specific period of time is called gross domestic product. Or we may define GDP as the market value of all the goods and services produced by labor and property located in" the region, usually a country. Following is the formula to calculate GDP GDP = private consumption +gross investment+ government spending+(exports imports) Example A Japanese-owned automobile factory in the US counts in US GDP but in Japanese GNP

Gross National Product:


The Gross National Product (GNP) is the value of all the goods and services produced in an economy, plus the value of the goods and services imported, less the goods and services exported. It means that if we add the foreign income which is earned by the organizations and individuals in the calculated GDP, the result will be in shape of GNP. For example if an individual earns income in other country, this income will be GDP for the country in which he is working and GNP for his homeland.

Net National Product:


The monetary value of finished goods and services produced by a country's citizens, whether overseas or resident, in the time period being measured (i.e., the gross national product, or GNP) minus the amount of GNP required to purchase new goods to maintain existing stock (i.e., depreciation). In other words, NNP is the amount of goods that can be consumed within a nation each year without reducing the amount that can be consumed in following years.

NNP=GNP- allowances for capital consumption

National Income:
The total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, interest, and pension payments to residents of the nation. National income is used to calculate various economics terms like GDP, GNP and GNI.

Personal Income:
The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments. Or an individual's total annual gross earnings coming from wages, business enterprises and various investments.

Disposable Personal Income:


Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal current taxes equals disposable personal income. Calculated as:

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