GDP is the total market value of all final goods and services produced within a country's borders in a period of time. It includes private consumption, investment, government spending, and net exports. GDP is calculated as C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports, and M is imports. NDP is GDP minus depreciation on capital goods used in production. GNP is the total value of final goods and services produced by a country's residents, wherever located. It includes income earned abroad but excludes income earned domestically by foreign residents. NNP is GNP minus depreciation on capital goods.

1. AQIB HUSSAIN BAJWA
ECONOMY
WHAT IS GDP:
TOTAL MARKET VALUE OF THE GOODS AND
SERVICES PRODUCT BY A COUNTRY'S ECONOMY DURING A
SPECIFIED PERIOD OF
TIME.
WHAT'S NOT INCLUDED IN THE GDP:
SALES OF GOODS THAT WERE PRODUCED OUTSIDE OUR
DOMESTIC BORDERS.
THE
BLACK MARKET).
FINAL
GOODS.

2. GDP=C+I+G+(X-M)
C=(CONSUMPTION) IS CONSISTING OF PRIVATE EXPENDITURES
(HOUSEHOLD
FINAL CONSUMPTION EXPENDITURE) IN THE ECONOMY.
EQUIPMENT, BUT DOES
NOT INCLUDE EXCHANGES OF EXISTING ASSETS.
OF GOVERNMENT
EXPENDITURES ON FINAL GOODS AND SERVICES.
= (THE AMOUNT A COUNTRY PRODUCES, INCLUDING
GOODS AND
SERVICES PRODUCED FOR OTHER NATIONS’ CONSUMPTION.
= (IMPORTS ARE SUBTRACTED IMPORTED GOODS WILL BE
INCLUDED IN THE
TERMS “G”, “I”, OR “C”, AND MUST BE DEDUCTED TO AVOID
COUNTING
FOREIGN SUPPLY AS DOMESTIC.

3. .
WHAT IS NDP:
THE NET MARKET VALUE OF ALL GOODS AND
SERVICES PRODUCED WITHIN A NATION'S
GEOGRAPHIC BORDERS OVER A SPECIFIED PERIOD
OF TIME.
CAPITAL THAT HAS BEEN CONSUMED OVER THE YEAR IN
THE FORM OF HOUSING, VEHICLE, OR MACHINERY.
NDP EQUALS THE GROSS DOMESTIC PRODUCT MINUS
DEPRECIATION ON A COUNTRY'S CAPITAL GOODS
NDP FORMULA:
NDP = GROSS DOMESTIC PRODUCT (GDP) – DEPRECIATION
WHAT IS GNP:
THE MARKETVALUE OF THE FINAL GOODS AND

4. SERVICES PRODUCED IN A GIVEN YEAR
GROSS NATIONAL PRODUCT (GNP) IS AN ESTIMATE OF TOTAL
VALUE OF ALL THE
FINAL PRODUCTS AND SERVICES PRODUCED IN A GIVEN
PERIOD BY THE MEANS OF
PRODUCTION OWNED BY A COUNTRY'S RESIDENTS
EXAMPLES OF GNP:
PAKISTAN +
INCOMING MONEY FROM OUTSIDE (PAKISTAN) – OUT GOING
MONEY
TO ABROAD (FOREIGNERS)
(WILL BE ADDED IN OUR OWN GNP) ….
INDIA
(WILL BE ADD IN OWN GNP) …
NET NATIONAL PRODUCT:
THE TOTAL VALUE OF GOODS PRODUCED AND
SERVICES PROVIDED IN A COUNTRY DURING ONE
YEAR,

5. THE TOTAL VALUE OF A NATION'S ANNUAL OUTPUT OF
GOODS AND SERVICES MINUS THE VALUE OF CAPITAL
GOODS USED UP IN THE PRODUCTION OF THIS
OUTPUT
FORMULA OF NNP
NNP = GROSS NATIONAL PRODUCT - DEPRECIATION
NNP IS A MEASURE OF HOW MUCH A COUNTRY CAN CONSUME
IN
A GIVEN PERIOD.