Circular Flow of Income Model

GDP

What is 'Gross Domestic Product - GDP'

Gross domestic product (GDP) is the monetary value of all the finished
goods and services produced within a country's borders in a specific time
period. Though GDP is usually calculated on an annual basis, it can be
calculated on aquarterly basis as well. GDP includes all private and public
consumption, government outlays, investments
and exports minus imports that occur within a defined territory. Put simply,
GDP is a broad measurement of a nations overall economic activity.

Read more: Gross Domestic Product (GDP) Definition |

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GNP

GNP is sum total of all the final goods and services produced by the ople
in a countryfor a specific time ( example 1 fiscal year

Where,
X = income of the people of a country who are living outside of the
Country
M = income of the foreigners in a country

NNP

Net National Product (NNP) in an economy is the GNP after deducting

the loss due to depreciation.
NNP = GNP - Depreciation
THE NNP is derived from deducting the cost of depreciation from the
GNP.
Green GDP- This is important
3. The importance of Green GDP
green GDP is very important because it factors the cost of loss when it
comes to environmental concerns like biodiversity. Sustainability is an
important issue nowadays and other factors like GNP, GDP and NNP
only consider factors of production and other material parameters.
Green GDP shows us the possible losses caused by climate change or
destruction of natural resources. It provides us good feedback for the
future.