GNP (gross national product) is a better measure of the expansion or contraction of current output than NNP (net national product) because the GNP includes only net additions to a nation's capital.

Question

Quizplus · Accepted Answer

GNP measures the total value of all final goods and services produced by a country's residents, regardless of where they are produced, and does not focus solely on net additions to capital. NNP, on the other hand, adjusts GNP by subtracting depreciation, providing a clearer picture of the net increase in a nation's wealth.

GNP (Gross National Product) Is a Better Measure of the Expansion