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It is the market value of all final goods and services produced in a country in a country in a given year.GDP considers income earned within the economy.GDP can also be defined and measured as sum of all factor payments. GDP at Market priceGDP at factor costGross Domestic Product (GDP)Gross National Product includes the income which belongs to the economy from all sources both within the economy and from foreign economy.GNP = Market value of domestically produced and services plus incomes earned by the residents of a country in foreign countries minus incomes earned by the foreigners in the country.Gross National Product (GNP)

The GNP estimated at current prices is called nominal GNP and GNP estimated at constant prices in a chosen year i.e base year is called real income.The GNP Deflator It is an adjustment used to convert nominal GNP and real GNP.GNP Deflator = PIN of chosen year/100Real GNP=Nominal GNP/ GNP DeflatorNominal and Real GNP