22_09_08

Net national product (NNP)

 Net National Product (NNP)

 The income that is left after deducting depreciation from the constant Gross National Product (GNP), is called the Net National Product (NNP) of an economy. 


 NNP = NDP + ( X - M ) { NNP = GNP - D } The following are the various uses of Net National Product (i) It is the National Income - NI of any economy.  Although GDP, NDP and GNP are all components of national income, they are not all written as National Income (NI). 
☆private income ☆

 (ii) It is the best method of estimating the national income of any country. 

☆constant price☆ 

(ii) When we divide the NNP by the total population of the country, it gives the per capita income of the country.  This is the annual per capita income.