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Answer:
How to Calculate the Gross National Product?
The official formula for calculating GNP is as follows:
Y = C + I + G + X + Z
Where:
C – Consumption Expenditure
I – Investment
G – Government Expenditure
X – Net Exports (Value of imports minus value of exports)
Z – Net Income (Net income inflow from abroad minus net income outflow to foreign countries)
Alternatively, the Gross National Product can also be calculated as follows:
GNP = GDP + Net Income Inflow from Overseas – Net Income Outflow to Foreign Countries
Where:
GDP = Consumption + Investment + Government Expenditure + Exports – Imports
Gross National Product takes into account the manufacturing of tangible goods such as vehicles, agricultural products, machinery, etc., as well as the provision of services like healthcare, business consultancy, and education. GNP also includes taxes and depreciation. The cost of services used in producing goods is not computed independently since it is included in the cost of finished