AboutHank Hokamp Expertise U. S. (American) History has been a hobby of mine for many a moon. Ask me a question about what happened in a certain year and I`ll tell you! My answer(s) won`t be boring!
Publications Champaign (IL) News-Gazette newspaper = Feature writer and City reporter. Will soon submit a 220 page non-fiction manuscript that deals with subjective thinking for publication.
Education/Credentials Two universities, one college and an institute. My major was Journalism with minors in American History and Sociology.
Awards and Honors 46 athletic awards, mostly in baseball and golf
Question What are the components of Gross National Product?
Answer
Hello, Michelle:
The measure of America's output of goods and services (GNP) is calculated by the Commerce Department using the following items:
Personal consumption
Government expenditures
Private investment
Inventory growth
Trade balance
Net income from foreign sources
The estimates for our Gross Domestic Product (GDP) and Gross National Product (GNP) are derived from the SAME expenditure measures with the DIFFERENCE being net income from foreign sources. Gross National Product is equal to gross domestic product plus receipts of factor income from the rest of the world less payments of factor income to the rest of the world. As is the case for the United States, GNP exceeds GDP when a nation is earning more from its businesses, financial investments, and labor that are overseas than US nonresidents are earning on businesses in the United States that they own, plus returns on US financial investments, plus labor income for nonresidents in the United States. Receipts of this factor income consist largely of receipts by US residents of interest and dividends and reinvested earnings of foreign affiliates of US corporations. The payments are largely those to foreign residents of interest and dividends and reinvested earnings of US affiliates of foreign corporations.
* FYI: The GDP is calculated using a chain-weighted method. The system recognizes business that has been globalized; deregulation that is increasing business activity, and the relative prices for goods that change quickly and dramatically. The chain system also recognizes the output for computers, telecommunications equipment and health services that is growing much faster than other parts of the economy. The chain method forces the government to recalibrate the relative prices of these goods - and their relative importance to the economy - every year.
