What is the difference between GDP and GNP deflator GDP deflator calculation?

The difference between GDP and GNP deflator GDP deflator calculation lies in the variables used to measure the overall price level.

GDP (Gross Domestic Product) is a measure of the total value of goods and services produced within a country's borders during a specific time period. It includes both domestic and foreign-owned production within the country.

GNP (Gross National Product), on the other hand, measures the total value of goods and services produced by a country's residents, regardless of their location. It includes the income earned by a country's residents from abroad and excludes the income earned by foreigners within the country.

The GDP deflator is a measure of the overall price level within an economy. It is calculated by dividing the nominal GDP (the value of goods and services produced at current prices) by the real GDP (the value of goods and services produced at constant prices). The GDP deflator reflects changes in both the prices of goods and services produced domestically and the prices of imported goods and services.

In contrast, the GNP deflator is calculated by dividing the nominal GNP by the real GNP. It measures the overall price level of goods and services produced by a country's residents, regardless of their location.

Therefore, the main difference between GDP and GNP deflator GDP deflator calculation is that GDP deflator considers both domestic and foreign-owned production within a country's borders, while GNP deflator only considers the production by a country's residents, regardless of their location.