How do you measure the GNP?

Factual Questions
1

What goes into this measure? Is it just finished goods. Or what about if I purchase a 1999 car in 2001?

What about stuff that is produced but doesn’t sell till later. When is that counted?

And finally is it a reliable indicator?

2

From the Britannica’s article on national income accounting:

“The most commonly used indicator of national output is the gross national product (GNP), which is a measure of the total market value of currently produced finished goods and the value of services rendered…The rule that only finished or final goods must be counted is necessary to avoid double or triple counting of raw materials, intermediate products, and final products. For example, the value of automobiles already includes the value of the steel, glass, rubber, and other components that have been used to make them.”

“Because national output includes goods and services that are highly diverse in nature and some that are not in fact placed on the market, the determination of market value is difficult and somewhat imprecise…The rule that only currently produced goods and services should be counted ensures that only production occurring in the course of a given year is included…”

“National accounting remains an inexact science, but it constitutes an invaluable tool for economic planners and government budget makers.”

3

all of which ignores the fact that GNP has been given up in favor of GDP (gross domestic product), which theoretically tells us more about what is actually happening to the economy within the 50 states.

4

The GNP includes all revenue generated from production of final goods in the economy. Flour counts if I buy it, but not if my baker or grocer buys it.
It’s related to GDP, but GDP makes allowance for dereciation, as I recall, and doesn’t include income to foreigners.
The 1999 car: Is it used? If yes, then no, it doesn’t count, if OAC Economics is to be believed. If it was still sitting on the lot from two years ago, then by some reckonings it counts towards the 1999 GDP & GNP (but why did you buy it?).

“Where do they get the numbers from?” is another good question. As my OAC Economics teacher might say, those people at StatsCan… they’re SO amazing…