GROSS NATIONAL PRODUCT

Gross National Product

Gross National Product

GDP or national income

National product may be gross national product and net national product (GNP, NNP). Also known domestic product GDP and net brust, PIN two quantities are obtained by adding to the above, the compensation of outside factors. GDP is not anything other than national income or new value created by being part of the social product that remains after deducting the means of production spent during the year. The GNP is the total value at market prices flow of goods and services during the period (usually one year), for the consumption of citizens and businesses of a country, wherever they are. Economic growth is the increase in the amount of work that is per square meter, the rent or value of goods and services produced by an economy. Economic growth has been defined so considerate of (historically) is desirable, for keeping a relationship with a certain amount of material goods available and hence some improvement in living standards of people. however, few people begin to think that economic growth is a dangerous double-edged sword, as measured as the increase in the goods produced by an economy, both poems is also related to what is consumed or spent in after words. (Lawn, 2006, 460)

The reason why the reasoning goes, economic growth may not actually be desirable, is that not everything is renobable spent many subjects or geological reserves (coal, oil, gas, atc.) Growth is usually calculated in terms real to exclude the effect of inflation on the price of goods and services produced. In economics, the terms "economic growth" or "economic growth theory" typically refer to the growth of productive potential, namely: Production in full "employment", check the growth of aggregate demand. The improvement of these indicators should theoretically lead to higher living standards of the population. (Layard, 2006, 48)

Economic growth of a country is considered important because it is related to GDP per capita of individuals of a country. Since one of the factors statistically correlated with socio-economic welfare of a country in the relative abundance of economic goods and other materials available for citizens of a country, economic growth has been used as a means of improving socio-economic conditions of a country. However, there are many other factors correlated statistically with the welfare of a country, GDP per capita being only one of these factors. This has raised an important criticism to the GDP per capita as a measure of socio-economic welfare, even purely material welfare (as GDP per capita may be materially enjoyable total welfare is being reduced.) (Lange, 2007, 591)

Measurement of GDP

GDP can be measured from two different approaches, obtaining in both cases the same results. a) As the flow of expenditure (or final products): So, what has been the fate of various goods and services produced during exercise. b) As a flow of income: as income distributed that have been generated during the production of those goods and services

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