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GDP and GNP

帮考网校 2020-08-06 16:39:09
GDP (Gross Domestic Product) and GNP (Gross National Product) are two important measures used to evaluate the economic performance of a country.

GDP is the total value of all goods and services produced within a country's borders in a given period of time, usually a year. It includes all final goods and services produced for consumption, investment, and government spending, but excludes intermediate goods and services.

GNP, on the other hand, measures the total value of all goods and services produced by a country's residents, regardless of their location, in a given period of time. It includes all final goods and services produced by a country's citizens, whether they are produced within the country or abroad.

The main difference between GDP and GNP is that GDP only takes into account the production that occurs within a country's borders, while GNP includes the production of a country's citizens both domestically and abroad.

In general, GNP is considered a better measure of a country's economic performance than GDP because it takes into account the contributions of a country's citizens who may be working abroad and sending money back to their home country. However, GDP is still widely used because it is easier to calculate and provides a more accurate picture of the economic activity that is taking place within a country's borders.
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