This post is the earliest reference to GDP in SI forum. I found the below definition more clear / easy to understand...PKBasu wrote: ↑Wed Sep 28, 2005 6:02 amFactor income from abroad can be wages, rents, interest and investment-income earned (by Indians) abroad and remitted home. To get the net figure, from this one subtracts wages, rents, interest and investment-income earned by foreigners in India and remitted abroad.puneets wrote:Shouldn't we subtract the money that intl. firms make in our county ?PKBasu wrote:Gross National Product = Gross Domestic Product + Net Factor Income from abroad
Edit- maybe that's what u mean by 'Net'.
C is actually consumer spending,
I is investments done by businesses (and people) in machines, buildings etc.
G is govt spending on healthcare, education, infrastructure, military etc.
NX is (Exports value - Imports value) of goods and services.