what is GDP and GNP?????

[Ice_Blue]

Dear Cancerian,

according to my teacher, we should follow the equation given in PBP study text.

GDP = C + I + G + (X-M)

here (X-M) is the export surplus. a very good elaboration of the equation has already been done by derivativetrader.

for calculating GNP we should use the following equation

GNP = GDP + Net Property Income from abroad

I hope this clears the point. It would be better if u consult book written by foreign authors like Samuelson, Lipsey etc when u have any confusion.

Do tell me if i make any mistake/error as i am also a student of module-A like u.

Regards,


Ice Blue