GDP (Gross Domestic Product):
A value measure of the flow of domestic goods and services produced by an economy over a period of time, such as a year. Only output values of goods for final consumption and for intermediate production are assumed to be included in final prices. GDP is sometimes aggregated and shown at market prices,meaning that indirect taxes and subsidies are included; when these have been eliminated, the result is GDP at factor cost. The word gross indicates that deductions for depreciation of physical assets have not been made.
GNP (Gross National Product):
GDP plus the net income or loss stemming from transactions with foreign counties. GNP is the broadest measurement of the output of goods and services by an economy. It can be calculated at market prices, which include indirect taxes and subsidies. Because indirect taxes and subsidies are only transfer payments, GNP is often calculated at a factor cost, removing indirect taxes and subsidies.
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