USA HISTORY

Detailed explanation-1: -GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.

Detailed explanation-2: -Both measure the value of a country’s economic activity. The main difference is that GDP measures productivity within a country’s geographical boundaries and GNP records economic activity by that country’s citizens and businesses, regardless of location.

Detailed explanation-3: -Consider a country that has a gross national product that exceeds its gross domestic product. This indicates that its citizens, businesses, and corporations are providing net inflows to the country through their overseas operations.

Detailed explanation-4: -The value of goods and services produced within the geographical boundaries of a nation in a financial year is termed as GDP. The value of goods and services produced by the citizens of a nation irrespective of the geographical limits in a financial year is known as GNP.