What is GDP? Difference Between GDP Vs GNI

Meaning of GDP

GDP 'Gross Domestic Product ' is Total Market Value of Goods and Services that are produced in a country, GDP is Measuring Tool of Macroeconomics [when Economy is Studied At Large scale-like whole countries per-person Income] it measures value in monetary/money term and it includes final goods and service only which are ready to use by the person at market price or Rate.

For Example 
In a Counry Xyz With population of 1,000 and there are 100 of companies who produced goods which are consumed by the people of country within XYZ (Within Country) at the market price of Rs 10 and every person spend 1 unit on an average which means the Total Production of Goods or Income of A Country XYZ will Be Rs 10,000 [1,000*10] 

KeyPoints of GDP

  • Measured the Economy in Monetary[Money] Terms.
  • Includes only Final and Finish Goods.
  • Its data of whole Country.

How GDP is Measured In Any Country

Generally, the Economist measured the economy or GDP of a Country and Use various principle and Approaches to Measure out The Gross Domestic Product In Monetary Terms, there are three types of approaches to measure GDP of A country Like India 

Three approaches to Calculate GDP

What is GNI and Who it is Different from GDP

GNI Stands For Gross National Income and the only Difference of GDP and GNP/GNI is that it includes Income and Expenditure of other Countries citizen's also but GDP only Includes the Consumption and Speeding Of Money Within the Country Simply Domestic Level so this is the main difference between GDP and GNI.

GNI = GDP + Income from Rest of World Minus - Expenditure/Payments from rest of The World 

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