|
Gross National
Product |
Net National Product |
|
An economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned
within the domestic economy by overseas residents. |
The monetary
value of finished goods and services produced
by a country's citizens, whether overseas or resident, in the time
period being measured
, minus the amount of GNP required
to purchase new goods to maintain existing stock |
|
Gross National Product (GNP) measures the total income earned by residents of a nation |
Net National Product (NNP) is GNP net of the capital stock used up |
|
GNP = GDP + Net Factor Income From Abroad |
NNP = GNP − Depreciation |
|
Gross National Product (GNP)
represents the market value of all goods and services produced by nationals |
Net national
product, or NNP, represents a mathematical
result of a country's production after accounting
for depreciation of inventory. |