Hi friends, in today’s article we are going to know about the difference between GDP and GNP or the difference between GNP and GDP. So let’s discuss in details.
Table of Contents
Difference between GDP and GNP
The main difference between GNP and GDP are given below – (GNP full form is Gross National Product)
|(i) GNP = GDP + NR – NP. To see the strength of a country’s local economy.||(i) GDP = Consumption + investment + government spending + (Exports – Imports). To see how the nations of a country are doing economically.|
|(ii) GNP is calculated via GDP plus net property income from abroad.||(ii) GDP is calculated via three methods.|
|(iii) GNP is used to measure now the national of a country are contributing economically.||(iii) GDP is used to measure the strength of a country’s domestic economy.|
|(iv) GNP is based on the location of ownership.||(iv) GDP is based on the geographically area of production.|
What do you mean by GNP?
Gross National Product denotes the total money value of all final goods and services produce in a country and net factor income from abroad during one year that is –
GNP = GDP – NFIA
What is National GDP and Real GDP?
When national income or GDP is calculated at current market price then it is called national GDP.
When national income or GDP is calculated at the constant price of some base period then it is called as the real GDP. It is most reliable index of economic welfare.
Difference between Disposable income and Personal Income
The difference between personal income and disposable income are mentioned below –
(i) Personal income is the income actually received by the person from all sources including transfer payments and factor income.
Disposable income on the other hand, in the personal income after paying tax. Disposable income = Personal income – Tax.
(ii) Personal income is a wider concept while disposable income is a narrower concept.
Distinguish between Stock and Flow variable
A stock variable is measured at on specific time and represents a quantity existing at that point in time which may have accumulated in the past.
On the other hand, at flow variable in measured over an internal of time. There a flow would be measured per unit of time. (Say one year)
So friends, this was the difference between GDP and GNP. Hope you get the full details about it and hope you like this article.
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