How Do You Calculate GDP & GNP?
Examine a nation’s economy by calculating the GDP and GNP. GDP, or gross domestic product, measures the production of all people living within its borders. GNP, or gross national product, uses the same formula but takes into account the production of its citizens, regardless of where they currently live. For instance, the GDP would only measure production within the United States’ borders, but GNP would apply the same formula to data for all Americans worldwide. Use information about the value of goods and services produced within a country and by its citizens to determine the GDP and GNP. Subtract the dollar amount of a country’s imports from its total exports to find the net exports. Add total consumer spending within a country to the government’s spending and the amount of private investments inside that nation’s borders. Add the net exports to the spending total to find the GDP. Add total consumer spending, government spending and private investing by members of a given nationality
