Can You Define What Is A National Product?

By Gross National Product (GNP) we mean the sum total of the money values of goods and services produced in a year by all the productive units of the country. It should be noted that if we take the money value of each and every product produced by each productive unit and take the sum of those values, then the values of some products will be added more than once. For example, a part of the output of wheat produced in a year goes to the production of flour in the same year. Thus a part of the output of wheat is included in the output of flour. Now if we take the value of the output of wheat and also the value of the output of flour then that part of the output of wheat which goes into production of flour is added twice in the national aggregate. Such multiple counting will have to be avoided in order to arrive at the GNP total.