Why is GNP given in US dollars?

When measuring such broad data, GNP provides information that other productivity measures do not include. If residents of a country were limited to domestic sources of income, GNP would be equal to GDP, and it would be less valuable to the government and policymakers. The information provided by GNP also helps in analyzing the balance of payments.

What is the difference between GNP and real GNP?

The difference between real and nominal GNP, or gross national product, is that the nominal GNP is calculated at the current price levels of the economy, and the real GNP is calculated relative to a set base year. Nominal GNP is typically used to compare current economies at current price levels, and real GNP can be used to evaluate a single economy's history.

What is real GNP?

Real GNP is gross national product that has been adjusted to account for inflation, which is the fluctuation of costs and prices over time. In essence, real GNP uses a combination of current-period production numbers and past-period prices to derive a number that can be legitimately compared across time periods to determine growth or attrition ...