Concepts: GDP, GNP, NNP, NDP

1. Gross Domestic Product (GDP)

1. GDP is the total monetary value of all final goods and services produced within a country's borders in a given time period.
2. It includes production by domestic and foreign companies operating within the country.
3. Nominal GDP is measured at current market prices, while Real GDP adjusts for inflation.
4. GDP Growth Rate indicates the rate of economic expansion or contraction.
5. GDP is divided into three sectors: agriculture, industry, and services.
6. The formula for GDP (expenditure method) is: GDP = C + I + G + (X - M), where C = consumption, I = investment, G = government spending, and (X - M) = net exports.
7. GDP is a key indicator of a country's economic health.

2. Gross National Product (GNP)

1. GNP is the total monetary value of all final goods and services produced by a country's citizens and businesses, regardless of their location.
2. It includes income earned by citizens abroad but excludes income earned by foreign residents within the country.
3. Formula: GNP = GDP + Net Factor Income from Abroad (NFIA).
4. GNP is a better measure of a country's economic contribution globally.
5. A negative NFIA indicates that foreign residents earn more income within the country than citizens earn abroad.

3. Net National Product (NNP)

1. NNP is the monetary value of all final goods and services produced by a country's citizens, adjusted for depreciation.
2. Depreciation refers to the worn-out or consumed capital goods during the production process.
3. Formula: NNP = GNP - Depreciation.
4. NNP represents the net economic output available to the country for consumption and investment.
5. If depreciation is high, NNP will be significantly lower than GNP.

4. Net Domestic Product (NDP)

1. NDP is the total value of all final goods and services produced within a country, adjusted for depreciation.
2. Formula: NDP = GDP - Depreciation.
3. NDP provides a measure of the country's net economic activity within its borders.
4. It reflects the sustainability of current economic production without depleting capital goods.

5. Key Differences Between Concepts

1. GDP focuses on domestic production, while GNP includes income from citizens abroad.
2. NDP and NNP account for depreciation, unlike GDP and GNP.
3. GDP and NDP are based on geographical boundaries, whereas GNP and NNP are based on nationality.

Key Points

1. GDP measures the total monetary value of all final goods and services produced within a country's borders.
2. Nominal GDP is measured at current prices, while Real GDP adjusts for inflation.
3. The expenditure method formula for GDP is: GDP = C + I + G + (X - M).
4. GNP includes production by a country's citizens, regardless of their location.
5. Formula for GNP: GNP = GDP + Net Factor Income from Abroad (NFIA).
6. Depreciation is the reduction in the value of capital goods over time.
7. NNP accounts for depreciation: NNP = GNP - Depreciation.
8. NDP is the net domestic production: NDP = GDP - Depreciation.
9. GDP measures domestic activity, while GNP measures national contribution globally.
10. A negative NFIA means foreign earnings within the country exceed citizens' earnings abroad.
11. Real GDP is a better indicator of economic growth as it eliminates inflation effects.
12. NNP reflects the economic output available for investment and consumption.
13. High depreciation lowers NNP and NDP compared to GNP and GDP.
14. GDP growth rate indicates the health of the economy.
15. GNP is used to assess the global economic contribution of a country's citizens and businesses.