What is GDP and GNI?
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.
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