Difference Between Gdp, Gnp and Nnp

Gross domestic crop (gross domestic product) is the add market measure out of each final goods and services produced in an economy in a year or a accustomed time period within a countrys borders (domestic output). This includes all production, both material and intellectual, everything produced by government and private business as well as consumer goods and capital construction. Gross national product (gross national product) is the total income earned by a countrys factors of production in a year or a given time period, no matter of where assets are located (nations output).Net national product (NNP) is the total market value of all final goods and services produced by residents in a country during a given time period. The difference between GDP and GNP is the net hostile income (NFI), which is the difference between factor payments received from the foreign sector by domestic citizens and factor payments made to foreign citizens for domestic production. The gross in GDP and GNP indicates that there is no margin for depreciation (capital consumption), value lost that occurs to inventory while it sits before cosmos sold or consumed or the amount of capital resources consumptiond up in the production process.That is the difference between GDP and NNP. Depreciation (DP) is a reduction in the value of an asset with the passage of time, due to endure and tear. It can include consumption of goods in the production of other goods or services. Examples are the wear and tear that occurs with capital equipment such as machinery, transference vehicles, office equipment and tools (all of these items leveltually wear down and need to be replaced), inadvertent damage, obsolescence or retirement of capital assets. GDP is most commonly cipher by the expenditure method.It is done by adding consumer expenditure (C) + firms investments (I) + government spending (G) + exports minus imports (X-M). GNP is calculated by victorious GDP + net property income from a broad (NFI). NNP is calculated by fetching GNP DP. For example, if a Chinese company operates and earn profits in Australia, the income is included in Australias GDP but not chinas GDP. This is because the production took place in Australia. However, the profits earned are included in Chinas GNP but not Australias GNP.This is because China owns the assets. There is also nominal GDP, which is todays output at todays prices and real GDP, todays output at base-year prices. To calculate real GDP, we take the nominal GDP, use a GDP deflator and adjust it for inflation. Inflation is the sustained increase in overall level of prices. This will overstate the value of GDP even if there has not been any increase in economic activity. The GDP deflator is a price index, which includes all good and services, rather than just consumer goods and services.