<p>I was reading my economics book and encountered with a paragraph which read:</p>

<p>"But GDP/NNP are now not considered as the best measures for the growth because countries having high extended debts are serviced through internal resources which tends to increase outflows and reduce GNP ' leaving GDP unaffected ' thus GNP/NNP are not seen as a correct way to judge the output of an economy"</p>

<p>Please answer the same by explaining the paragraph quoted.</p>

<p>PS : I know the answer is itself in the paragraph but I'm unable to understand  so I seek a good explanation of this paragraph with a good answer. Thanx in advance.</p>

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2016-10-17T21:22:08.220Z
GNP is now usually called GNI (Gross National Income) so your book may be slightly behind the times
Henry
<macroeconomics><gdp>
How is a GDP of an economy unaffected with reduction in GNP?
Shivam Tripathi
# How is a GDP of an economy unaffected with reduction in GNP?

(Asked by: username_0 on 2016-03-01)

I was reading my economics book and encountered with a paragraph which read:

"But GDP/NNP are now not considered as the best measures for the growth because countries having high extended debts are serviced through internal resources which tends to increase outflows and reduce GNP ' leaving GDP unaffected ' thus GNP/NNP are not seen as a correct way to judge the output of an economy"

Please answer the same by explaining the paragraph quoted.

PS : I know the answer is itself in the paragraph but I'm unable to understand so I seek a good explanation of this paragraph with a good answer. Thanx in advance.

**Tags:** macroeconomics, gdp

> **Comments:**
> **username_1**: GNP is now usually called GNI (Gross National Income) so your book may be slightly behind the times  

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## 0 answers

