Measurement of GDP, GNP, NNP
GDP GNP and NNP constitute the three fundamental measures of an economy’s productive performance.
• Gross domestic product (GDP) is the total value of output of goods and services produced in a county in a given period of time regardless of the ownership of the factors of production It therefore includes both consumer and capital goods and the output of both the private and public sectors.
• Gross national product (GNP) is the total output produced by domestically owned factors some of which may be located abroad It is calculated from GDP by adding on net property income from abroad.
• Net national product (NNP) is GNP less the depreciation of the nation’s capital stock.
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