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GDP AND GNP A FEW POINTS -- FOR BANK INTERVIEWS

GDP (or Gross Domestic Product) and GNP (Gross National Product) measure the size and strength of an economy but are calculated and used in different ways.

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GDP

GNP

Stands forGross Domestic ProductGross National Product
DefinitionAn estimated value of the total worth of a country’s production and services, within its boundary, by its nationals and foreigners, calculated over the course on one year.An estimated value of the total worth of production and services, by citizens of a country, on its land or on foreign land, calculated over the course on one year.
Formula for CalculationGDP = consumption + investment + (government spending) + (exports − imports).GNP = GDP + NR (Net income inflow from assets abroad or Net Income Receipts) - NP (Net payment outflow to foreign assets).
UsesBusiness, Economic Forecasting.Business, Economic Forecasting.
Application (Context in which these terms are used)To see the strength of a country’s local economy.To see how the nationals of a country are doing economically.
Layman UsageTotal value of products & Services produced within the territorial boundary of a country.Total value of Goods and Services produced by all nationals of a country (whether within or outside the country).
Country with Highest Per Capita (US$)Qatar ($102,943)Luxembourg ($45,360).
Country with Lowest Per Capita (US$)Liberia ($16).Mozambique ($80).
Country with Highest (Cumulative)USA ($13.06 Trillion in 2006).USA (~ $11.5 Trillion in 2005).

1 comment:

  1. Sir I gave JAIIB this Nov 2014 online mode. My score was as follows:-
    Priniples-48
    Accounts:-65
    Legal:- 50 Aggregate:(163*100)/300
    Am I a "Pass" candidate. Thanks in advance for the reply

    ReplyDelete

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