Scribd Logo
Upload

Welcome to Scribd!

  • 42 views

    ECON 1580 Discussion Assignment Unit 6

    Uploaded by

    Tesfahun
    The document provides steps to calculate a country's gross national product (GNP). It defines GNP as equal to GDP plus net factor earnings from abroad. It computes GDP by adding consumption, government purchases, investment, and subtracting net exports. Net exports are calculated as exports minus imports. Finally, it calculates GNP as GDP plus net foreign investment, which is foreign bond purchases plus earnings on foreign investments minus foreign earnings on domestic investments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    ECON 1580 Discussion Assignment Unit 6

    Uploaded by

    Tesfahun
    42 views1 page
    The document provides steps to calculate a country's gross national product (GNP). It defines GNP as equal to GDP plus net factor earnings from abroad. It computes GDP by adding consumption, government purchases, investment, and subtracting net exports. Net exports are calculated as exports minus imports. Finally, it calculates GNP as GDP plus net foreign investment, which is foreign bond purchases plus earnings on foreign investments minus foreign earnings on domestic investments.

    Original Description:

    Uopeople Econ 1580

    Original Title

    ECON 1580 discussion assignment unit 6

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides steps to calculate a country's gross national product (GNP). It defines GNP as equal to GDP plus net factor earnings from abroad. It computes GDP by adding consumption, government purchases, investment, and subtracting net exports. Net exports are calculated as exports minus imports. Finally, it calculates GNP as GDP plus net foreign investment, which is foreign bond purchases plus earnings on foreign investments minus foreign earnings on domestic investments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    42 views1 page

    ECON 1580 Discussion Assignment Unit 6

    Uploaded by

    Tesfahun
    The document provides steps to calculate a country's gross national product (GNP). It defines GNP as equal to GDP plus net factor earnings from abroad. It computes GDP by adding consumption, government purchases, investment, and subtracting net exports. Net exports are calculated as exports minus imports. Finally, it calculates GNP as GDP plus net foreign investment, which is foreign bond purchases plus earnings on foreign investments minus foreign earnings on domestic investments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    The gross national product (GNP) is computed by adding government spending, individual

    consumer spending, private domestic investments, net exports, and income earned by citizens
    overseas to the home economy, while omitting income from foreign residents.

    1. Compute net foreign investment.Net foreign investment = Bond Purchases +Earnings


    on foreign investments - Foreign earningson Amagre investment
    = 200 + 75 - 25 = 250 billion G
    I added Bond purchases and earnings on foreign investments and subtracted foreign earnings
    by using the formula
    2. Compute net exports.
    Net exports = Exports - Imports
    = 50 - 150
    = -100 billion G

    3. Compute GDP. GDP = Consumption + Government purchases + Investment +


    Net exports
    = 350 + 200 + 100 – 100
    = 550 billion G
    4. Compute GNP.GNP = GDP + Net factor earnings from abroad
    = 550 + (75 - 25)
    = 600 billion G
    Reference
    Business Standard (2021) WHAT IS GROSS NATIONAL PRODUCT (GNP) Retrieve from
    https://www.business-standard.com/about/what-is-gross-national-product-gnp#:~:text=The
    %20formula%20for%20GNP%20%3D%20GDP%20%2B%20Net,income%20earned%20by
    %20foreign%20residents%20from%20domestic%20investments.

    You might also like