On this page, We are going to learn about the full form of GNP and the meaning of GNP, As well as the meaning, definition, and acronym for GNP in different categories. So you should read this post till the end.
Full Form of GNP: Gross National Product
GNP Stands for Gross National Product. Gross National Product (GNP), commonly referred to as national income, is a measure of the total amount of goods and services produced by a country in a given year.
in short, Gross National Product is the final monetary value of goods and services produced by the citizens of a country in a financial year. GNP is the equivalent of the economy in the national accounts and is often used as a measure of the economy.
How to calculate Gross National Product
lets, ‘s Understand how to Calculating Gross National Product (GNP)
|GNP = C + I + G + X + Z|
|C – Consumption|
I – investment
G – government
X – net exports
Z – net income earned by domestic residents
Benefits and uses of GNP
The International Monetary Fund (IMF) ranks countries based on their national income. The IMF ranks countries according to their purchasing power parity (PPP).
The GNP provides a quantitative and qualitative picture of the economy when estimating national income, unlike GDP, which is on a smaller scale. A measure of an economy’s internal strength as well as its external strength.
A pattern helps to understand an economy’s behavior and the patterns behind its production. This indicator shows how dependent the countries of the world are on a particular product of a particular country.
It provides information on an economy’s human resources, their numbers, and their income. Besides this, it also shows the relationship between one economy and the others.