Answer to Question #140943 in Macroeconomics for Max jain

Question

What is the difference between GDP and GNP.

Answer 1

Gross Domestic Product is the measure of goods and services produced within a country during a specific period of time. It is divided into nominal GDP and real GDP. Nominal GDP is a country's economic output at current total market value, while real GDP refers to the measure of a country's output adjusted for inflation. Conversely, Gross National Product refers to the measure of goods and services that a country's residents produce regardless of their location. It does not include non-residents' economic activities even when they occur within the country.