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Definition of GDP and GNP. Difference between GDP and GNP.


Definition of GDP and GNP.

Both can be defined easily according to given below.

GDP Definition= 
                              GDP stands for Gross Domestic Product is the total market value of all the goods                                 and services ,which is manufactured or produced domestically in the country                                         within one year of time.

GNP Definition=
                              GNP stands for Gross Nation Product is the total market value of all the goods and                               services, by all citizens of the country at national level not at domestic level within                               given period of time i.e. one year.

Difference between GDP and GNP.

  • As we know that GDP and GNP both are used to measure the market value of all goods and services manufactured or produced within a country for final sale.
  • However it is also very important to know about the fact that what the difference between them is. From the above definitions we can conclude the facts about GDP and GNP which explains that
  • GDP is especially used to measure the domestic levels of production within a country during given period of time. And
  • GNP is especially used to measure the level of production of the country during given period of time.
  • GDP is also used to see the strength of a country’s local economy. And 
  • GNP is used to see the ratio of economy of the country as compared with other countries of the world.


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