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

The difference between GDP and GNP deflator nominal GDP 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 production within the country.

On the other hand, the GNP deflator nominal GDP is a measure that adjusts the GDP by taking into account the difference between GDP and Gross National Product (GNP). GNP represents the total value of all final goods and services produced by a country's residents, regardless of their location, during a specific time period.

The GNP deflator nominal GDP is calculated by dividing the nominal GDP by the GNP and multiplying it by 100. This measure helps to account for the impact of international trade and income earned by residents abroad on a country's economic performance.

In summary, while GDP measures the total value of production within a country's borders, the GNP deflator nominal GDP adjusts for the difference between GDP and GNP to provide a more comprehensive understanding of a country's economic performance.