(a) Define Gross National Product (GNP). (b) Describe the three methods of measuring national income....

Explanation

(a) The Gross National Product (GNP) is the total money value of all the goods and services produced in a country in a year plus the net income from abroad.

(b)(i) Income Method: Measures all incomes earned by the various factors of production, for example wage and salary + rents + profits or dividends + interest.

(ii) Expenditure method: Measures the total expenditure on currently produced final goods and services by the households, firms and government plus net export. Y=C+I G+ (X - M)

(iii) Output of Net Product or Value-added Method:Measures the total monetary value of all goods and services produced by various sectors of the economy. In this method, the value of net contribution of each sector is added.