What is the difference between GDP and GNP deflator GDP deflator price index?

The difference between GDP and GNP deflator GDP deflator price index lies in the measures they represent and the variables they consider.

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

Gross National Product (GNP) is a measure of the total value of all final goods and services produced by a country's residents, regardless of their location, during a specific time period. It includes the income earned by a country's residents from abroad and excludes the income earned by foreign residents within the country.

The GDP deflator is a price index that measures the average price level of all final goods and services produced within a country. It is calculated by dividing the nominal GDP (current prices) by the real GDP (constant prices) and multiplying by 100.

On the other hand, the GNP deflator is a price index that measures the average price level of all final goods and services produced by a country's residents, regardless of their location. It is calculated in a similar manner to the GDP deflator, by dividing the nominal GNP by the real GNP and multiplying by 100.

In summary, GDP measures the total value of production within a country's borders, while GNP measures the total value of production by a country's residents. The GDP deflator measures the average price level of goods and services produced within a country, while the GNP deflator measures the average price level of goods and services produced by a country's residents.