GDP n GNP

GDP n' GNP

GDP- Gross Domestic Profit- Total value of all final goods and services produced within a country's 
borders. Produced within that particular year. Includes all production or income earned within the US the US and foreign producers. Excludes production outside of the US even by Americans

GNP(Gross National Product) Total value of all final goods produced by Americans within a year includes production or income earned by Americans anywhere in the world, it excludes production by non Americans even in the U.S

GDP= C+Ig+G+Xn

C=Consumption 67%
Ig- Gross Private Domestic Investment 18% Ex- construction of house, unsold inventory of products built in a year.
G- Government Spending 17% Ex- Guns, missles, school buses, teacher salaries
Xn- Net Exports (Exports-Imports) -2%


Included- C, Ig,G. Xn
Excluded- intermediate goods, avoid double or multiple counting, used or secondhand goods, stocks and bonds(it is a purely financial transaction), Gifts/ transferred payments(public or private)(scholarships, social security, unemployment), Illegal activities, Unreported business activities(tips), Non-market activity(volunteer, babysitting, repair work for one self)