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Unformatted text preview: inside the country and contributing to the value of the GDP. Since they are not the nationals their contributions (F) will have to be deducted to arrive at an accurate value of the GNP. In other words net of the income earned abroad (N-F) when adjusted to the GDP gives the GNP. GDP + (N -F) = NNP For example , assume the values of GDP, N and F as 1780, 230, 310 respectively. Then, GNP = 1700 GDP + N - F = GNP 1780 + 230 - 310 = 1700 On the other hand, if we begin with GNP then the reverse operation will be necessary. GNP- N+F = GDP 1700 - 230+310 = 1780 Note that GNP will be more or less than GDP according to relative amounts of N and F. If N will be greater than F then GNP would be greater than GDP but if N will be less than F, GNP will be smaller than GDP (Hence GNP < GDP)....
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- Fall '10
- Gross National Product, Gdp, gross domestic product, Value added, Measures of national income and output