Economics Real Vs Nominal Gdp Questions
The difference between GDP (Gross Domestic Product) and GNP (Gross National Product) growth rate lies in the scope of measurement. GDP measures the total value of goods and services produced within a country's borders, regardless of the nationality of the producers. On the other hand, GNP measures the total value of goods and services produced by a country's residents, regardless of their location.
The GDP growth rate reflects the change in the value of goods and services produced within a country over a specific period of time. It indicates the economic growth or contraction of a country's domestic economy.
In contrast, the GNP growth rate reflects the change in the value of goods and services produced by a country's residents, regardless of where they are located. It takes into account the income earned by a country's residents from their economic activities both domestically and abroad.
Therefore, the difference between GDP and GNP growth rate is that GDP measures the value of production within a country's borders, while GNP measures the value of production by a country's residents, regardless of their location.