Gross National Product


The Gross National Product (GNP) is the total dollar value of all final goods and services produced for consumption in society during a particular time period. Its rise or fall measures economic activity based on the labor and production output within a country. The figures used to assemble data include the manufacture of tangible goods such as cars, furniture, and bread, and the provision of services used in daily living such as education, health care, and auto repair. Intermediate services used in the production of the final product are not separated since they are reflected in the final price of the goods or service. The GNP does include allowances for depreciation and indirect business taxes such as those on sales and property.

The Gross Domestic Product (GDP) measures output generated through production by labor and property which is physically located within the confines of a country. It excludes such factors as income earned by U.S. citizens working overseas, but does include factors such as the rental value of owner-occupied housing. In December 1991, the Bureau of Economic Analysis began using the GDP rather than the GNP as the primary measure of United States production. This figure facilitates comparisons between the United States and other countries, since it is the standard used in international guidelines for economic accounting.

 

 

 

 

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