Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Course Subjects
  • Tutoring
  • Home
  • Economics, Finance, & Analytics
  • Economic Analysis & Monetary Policy

Net National Product - Explained

What is Net National Product?

Written by Jason Gordon

Updated at March 27th, 2023

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

What is Net National Product?

When examining economic statistics, there is a crucial distinction worth emphasizing. The distinction is between nominal and real measurements, which refer to whether or not inflation has distorted a given statistic. Looking at economic statistics without considering inflation is like looking through a pair of binoculars and trying to guess how close something is: unless you know how strong the lenses are, you cannot guess the distance very accurately. Similarly, if you do not know the inflation rate, it is difficult to figure out if a rise in GDP is due mainly to a rise in the overall level of prices or to a rise in quantities of goods produced. The nominal value of any economic statistic means that we measure the statistic in terms of actual prices that exist at the time. The real value refers to the same statistic after it has been adjusted for inflation. Generally, it is the real value that is more important.

Back to:ECONOMIC ANALYSIS & MONETARY POLICY

Related Topics

  • Macroeconomics
  • Macroeconomic Frameworks
  • Macroeconomic Policy Tools
  • Productivity Economics
  • One-Third Rule
  • Gross Domestic Product (GDP)
  • Durable and Non-Durable Goods
  • Weightless Economy
  • Intermediate and Final Goods or Services
  • Nominal GDP
  • Converting Nominal to Real GDP
  • GDP Inflator
  • Nominal GDP Price Index
  • Measuring GDP
  • Gross National Product
  • Net National Product
  • Factor Income
  • Gross National Income
  • Expenditure Method
  • The Problem of Double Counting GDP
  • Double Counting
  • Why is Tracking Real GDP Important? 
  • Convert Currencies with Exchange Rates
  • Convert GDP to a Common Currency
  • Per Capita GDP
  • GDP Per Capita
  • GDP as a Measure of Society Well-Being
  • Limitations of GDP as a Measure of the Standard of Living
national output net national product nnp

Was this article helpful?

Yes
No

Related Articles

  • Marginal Cost - Explained
  • Repeat Sales Method - Explained
  • Diner's Dilemma - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand