roduct (GNP) is GDP with the addition of the income accruing to domestic residents arising from transactions abroad, and less the income earned in the domestic market accruing to foreigners abroad (Byrns & Stone, 1995). Investment income is also a significant factor.
The major components of GDP are (a) personal consumption expenditures, (b) gross private domestic investment, and (c) government purchases of goods and services. The deduction of depreciation (capital consumption) from GDP yields NDP, while the deduction of indirect business taxes from NDP yields national income (NI). The components of NI are (a) wages and salaries, (b) proprietors' income (unincorporated businesses, professionals, and farms), (c) corporate profits before tax, (d) rental income, and (e) interest (Byrns & Stone, 1995).
GDP and GNP are measured in both nominal and real terms. Nominal refers to t
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