How to 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.
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Things You'll Need
- Total consumer spending (in dollars)
- Total government spending (in dollars)
- Gross private investments (in dollars)
- Total imports (in dollars)
- Total exports (in dollars)
Instructions
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Calculate the GDP
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1
Subtract the dollar amount of a country's imports from its total exports to find the net exports.
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2
Add total consumer spending within a country to the government's spending and the amount of private investments inside that nation's borders.
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3
Add the net exports to the spending total to find the GDP.
Find the GNP
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4
Add total consumer spending, government spending and private investing by members of a given nationality. For instance, you would add together the spending by American consumers, private investors and government programs worldwide.
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5
Determine net exports by subtracting the exports made by a nation's citizens from total dollar amount of the nation's imports.
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6
Add net exports for a country's citizens to the spending by its citizens worldwide to determine the GNP.
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1
Tips & Warnings
Look up information about the economy of a nation in the Central Intelligence Agency's World Factbook or look for a given country's information on a data table at the World Bank's site.
References
Resources
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