Principles of Macroeconomics / Unit 3 MAC 0214 short lesson, about 20 seconds
GDP, GNP and NNP
Captions available
The idea
GDP counts production inside a country's borders. GNP counts production by a country's residents wherever they are. Net national product is GNP minus depreciation.
In practice
A foreign-owned factory here is in American GDP but not in American GNP.
Where people slip
Depreciation is the capital worn out during the year, so net product is what is left after replacing it.
Your place on the trail
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