Question

what is the difference between GDP and GNP?

Answer 1

Dear student,

Gross Domestic Product is the sum total of all the goods and services produced in domestic territory of a country in a given year.

Gross National Product is the aggregate value of all goods and services produced by normal residents of a country during a given year.

The difference between GDP and GNP is that the GNP is inclusive of net factor income from abroad.
GNP = GDP + NFIA

Regards.