Gross national
product (GNP)
GNP is the
money value of final goods and services produced by the country’s factors of
production wherever they are located during a given period of time, a quarter
or a year. In other words, when the net factor incomes from abroad are added to
GDP we get GNP. Thus,
GNP = GDP +
net factor incomes from abroad
Thus, GNP =
C + I + G + (X-M) + (R-P)
GNP (market
price) = GNP (factor cost) + indirect taxes - subsidies.
GNP (factor
cost) = GNP (market price) – indirect taxes + subsidies.