📈 Economics

What is GDP and GNI?

2 answers
Answered Mar 20Economics
Alyssa MillerSeasoned tutor studying Law at Warwick University. Online tutoring available!376 students helped

Gross national income is a measurement of a country's income. It includes all the income earned by a country's residents and businesses, including any income earned abroad. Income is defined as all employee compensation plus investment profits. It includes earnings from foreign sources. GNI also includes any product taxes not already counted, minus subsidies.2 It does not count income earned by foreigners located in the country. It also does not include the shadow or black economy. GDP measures the income of anyone within a country's boundaries. It doesn't matter who produces it. It includes anything earned by foreigners, including foreign businesses, while they are in the country. GDP measures production while GNI measures income. GNI equals GDP plus wages, salaries, and property income of the country's residents earned abroad. It also includes net taxes and subsidies receivable from abroad

Answered Nov 18Economics
Boris KharitontsevVery excited about sharing my perspective on Maths and Economics!20 students helped

GDP or Gross Domestic Product is one of the most widely used measures of an economy’s output. 📈 It could be defined as “the total value of goods and services produced within country’s borders in a specific time period”💰 i.e. GDP = Total Output = Total Income = Total Expenditure GNI or Gross National Income is the sum of a nation’s GDP and the net income it receives from overseas. i.e. GNI = GDP + net income from abroad ⬇️ More specifically ⬇️ To calculate GNI, the compensation paid to resident employees by foreign firms and income from overseas property owned by residents is added to GDP, while compensation paid by domestic firms to foreign employees and income earned by foreign owners of domestic property is substrated.