Economics Gdp Questions
The difference between GDP and GNP at constant prices lies in the focus of each measure. GDP (Gross Domestic Product) at constant prices measures the total value of all goods and services produced within a country's borders over a specific period, adjusted for inflation. It reflects the economic activity within a country's territory.
On the other hand, GNP (Gross National Product) at constant prices measures the total value of all goods and services produced by a country's residents, regardless of their location, over a specific period, adjusted for inflation. It includes the income earned by a country's residents from abroad and excludes the income earned by foreigners within the country.
In summary, GDP at constant prices focuses on economic activity within a country's borders, while GNP at constant prices focuses on economic activity by a country's residents, regardless of their location.