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Watch also UGC NET - MACROECONOMICS https://www.youtube.com/playlist?list=PLQeaYsjFGUzjvn_z0MV8HAXolu4CBDtlp National income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time. Gross National Product (GNP), the value of all final goods and services produced by the country’s factors of production and sold on the market in a given time period. GNP, which is the basic measure of a country’s output studied by macroeconomists, is calculated by adding up the market value of all expenditures on final output. GNP therefore includes the value of goods like bread sold in a supermarket and textbooks sold in a bookstore, as well as the value of services provided by stock brokers and plumbers. Because output cannot be produced without the aid of factor inputs, the expenditures that make up GNP are closely linked to the employment of labor, capital, and other factors of production. GNP does not take into account the economic loss due to the tendency of machinery and structures to wear out as they are used. This loss, called depreciation, reduces the income of capital owners. To calculate national income over a given period, we must therefore subtract from GNP the depreciation of capital over the period. GNP less depreciation is called net national product (NNP). GDP is supposed to measure the volume of production within a country’s borders, whereas GNP equals GDP plus net receipts of factor income from the rest of the world. GNP tracks national income more closely than GDP does, and national welfare depends more directly on national income than on domestic product. GDP, GNP, NNP, & NDP #YOUCANLEARNECONOMICS
