Discuss Economic Indicators Gdp Gnp & Ppp

Hence GNP is the money value of total national production for any given period. Two points needs attention in calculating the G.N.P of a country. Firstly, we must take into account the money value of final goods (and services) produced in the economy to avoid double or multiple counting. It should be remembered that the final goods and services are those which are finally consumed by the consumers. Such good and services do not enter into the manufacturing of other goods and services. Secondly, we must take into account the money value of currently produced goods and services while estimating the G.N.P of the country. This is due to the fact that the G.N.P is a measure of the productivity during a period of time. Thus if certain good are produced in 2010 but are not sold till 2011, they would be part of G.N.P for 2010 and not be counted as part of the G.N.P of 2011. There are two method of calculating G.N.P of a country. The Expenditure Approach Income Approach GDP GDP Stands for Gross Domestic Product. G.D.P refers to the total output raised within the geographical boundaries of the economy during a year. Hence G.D.P is