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Answer» Gross National Product (GNP): - The market value of the total goods and services produced, by citizens of a country, within the country or in foreign country is called Gross National Product (GNP).
- The major difference between GDP and GNP is that in GDP production done within the boundary of the country is considered irrespective whether it is done by Indians or foreigners in India. However, in GNP production done by citizens done in a country or in a foreign country is considered.
Important points: - GNP considers the value of production done only in current year and not that of previous year.
- GNP = GDP + Net income obtained from foreign countries -Total payment to foreign countries.
- Since GNP gives a true picture of the national income over GDP, it is used widely in practice.
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