Gross National Product (GNP) is the total value of all final goods and services produced by a country's residents in a specific time period, usually a year. It includes both the production within the country's borders and the production by its citizens abroad.
To calculate GNP, you can use the following formula:
GNP = GDP + Net property income from abroad
Here's a breakdown of the formula:
1. Gross Domestic Product (GDP): This represents the total value of all final goods and services produced within a country's borders in a specific time period. It includes consumption, investment, government spending, and net exports (exports minus imports).
2. Net property income from abroad: This is the difference between the income earned by residents from investments made abroad and the income earned by foreigners from investments made in the country.
By adding GDP and the net property income from abroad, you get the Gross National Product.
In summary, Gross National Product (GNP) is a measure of the total economic output produced by a country's residents, both domestically and abroad. It is calculated by adding the Gross Domestic Product (GDP) and the net property income from abroad.
