What is GNP a measure of?

GNP, or Gross National Product, is a measure that encompasses the total value of all goods and services produced by the residents of a country, including net income from abroad. This means it takes into account not only the domestic production within the country's borders but also the income earned by residents from investments or work conducted outside the country. Thus, GNP provides a broader picture of the economic performance of a nation's residents, reflecting both domestic production and international earnings.

This distinction between GNP and other measures like Gross Domestic Product (GDP) is critical; while GDP focuses solely on output within national borders, GNP includes net property income from abroad, capturing the total economic activities attributable to a country's residents. Therefore, when considering GNP, it is essential to acknowledge that it combines domestic output with international earnings, thus delivering a comprehensive view of a nation’s economic health and the financial well-being of its residents.