GDP measures total value of nation's production including services and research. GNP includes all business production plus overseas investment gains. Both figures can be calculated per capita for economic development analysis
GDP measures market value of all final goods and services produced in a country. GDP can be calculated using production, income, or expenditure approaches. Nominal GDP adjusts for inflation, real GDP for comparing national economies. GDP per capita provides better standard of living indicator than nominal GDP
Equilibrium occurs when aggregate supply equals aggregate demand. Aggregate demand equals consumption plus investment. Aggregate supply equals consumption plus saving. National income can include government expenditure and net exports
GDP measures total monetary value of all goods and services produced within a country. GDP can be calculated using either income or expenditures approach. Income approach starts with total income from production, expenditures with spending
GNP measures total economic output of country's citizens, including those abroad. Calculated by adding final values of goods and services produced domestically. Excludes used items and existing houses produced within country borders
Keynes introduced consumption function to show income-expenditure relationship. Formula connects total consumption (C) to gross national income (Y)