GDP (Gross Domestic Product)
GDP measures the total value of all final goods and services produced within the borders of a country during a specific period, typically a year. It includes the value of goods and services produced by both domestic and foreign factors of production within the country. GDP represents the overall economic output of a nation.
GDP at Factor Cost = Market Value of Final Goods and Services – Indirect Taxes + Subsidies
GDP at Market Price = GDP at Factor Cost + Indirect Taxes – Subsidies
NDP (Net Domestic Product)
NDP is derived from GDP by subtracting the value of depreciation or the wear and tear of capital goods (such as machinery, buildings, and equipment) during the production process. NDP provides a measure of the net value added by the economy after accounting for the replacement or renewal of depreciated capital.
NDP at Factor Cost = GDP at Factor Cost – Depreciation
NDP at Market Price = GDP at Market Price – Depreciation
GNP (Gross National Product)
GNP measures the total value of all final goods and services produced by the residents of a country, regardless of their location, within a specific period. It includes the domestic production of goods and services as well as the net income earned from abroad by residents of the country, such as profits, wages, and salaries generated by overseas investments.
GNP at Factor Cost = GDP at Factor Cost + Net Income from Abroad – Depreciation
GNP at Market Price = GNP at Factor Cost + Indirect Taxes – Subsidies
NNP (Net National Product)
NNP is derived from GNP by subtracting the value of depreciation. Similar to NDP, NNP represents the net value added by the economy after accounting for the depreciation of capital goods. It provides a measure of the nation’s net income and output.
NNP at Factor Cost = GNP at Factor Cost – Depreciation
NNP at Market Price = NNP at Factor Cost + Indirect Taxes – Subsidies
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