 Gross  domestic product (GDP) is the market value of all officially recognized final goods and services produced within ...
 Is   a major economic activity indicator Represents    business activity Economists rely on this data to determine gro...
 Ifthe economy appears to be growing too  fast and GDP has shown a pattern of  steadily rising, policymakers might  evalu...
   Product Approach-   Market value of all final goods and services calculated    during 1 year   Income approach-   Sum...
   Gross national product (GNP) is the market    value of all the products and services produced in    one year by labour...
   It indicates the economic condition of the country.   Helps compare own country’s economic condition with    other co...
 Throws    light on source of employment Tells   about rate of economic growth                                          ...
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14.04.13 gdp and gnp
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14.04.13 gdp and gnp

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14.04.13 gdp and gnp

  1. 1.  Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country‘s standard of living. Eg: If we say GDP is up by 3% last year, it means economy has grown by 3%. 2
  2. 2.  Is a major economic activity indicator Represents business activity Economists rely on this data to determine growth or decline of economy Helps investors to know where to invest/allocate the money Unemployment is an indicator of shrinking GDP 3
  3. 3.  Ifthe economy appears to be growing too fast and GDP has shown a pattern of steadily rising, policymakers might evaluate whether a change needs to be made to interest rates in order to keep inflation under control. 4
  4. 4.  Product Approach- Market value of all final goods and services calculated during 1 year Income approach- Sum total of incomes of individuals living in a country during 1 year Expenditure Approach- All expenditure incurred by individuals during 1 year All the above approaches should have the same result 5
  5. 5.  Gross national product (GNP) is the market value of all the products and services produced in one year by labour and property supplied by the residents of a country. Basically, GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. 6
  6. 6.  It indicates the economic condition of the country. Helps compare own country’s economic condition with other countries Study of GNP guides us to make policies for saving,investment and consumption Gives information on distribution of wealth. Gives information about the contribution of various sectors of the economy eg:agriculture,industrial 7
  7. 7.  Throws light on source of employment Tells about rate of economic growth 8
  8. 8. 9

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