Question
GNP vs GDP (a) Provide deÖnitions of GNP and GDP (b) What are the differences between...
GNP vs GDP
(a) Provide deÖnitions of GNP and GDP
(b) What are the differences between the two concepts?
(c) Do wages earned in US by Canadian residents count towards GNP? How about GDP
Answers
a)
GNP means value of goods and services that are produced by the residents and business of country during an accounting year.
GDP means value of goods and services produced by the all in geographical boundary.
b)
GDP does not differentiate between residents and non residents in geographical area. While GNP makes difference between the residents and non residents.
C)
Such wage will not be a part of GNP of USA. It will be a part of GDP of USA.
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