Gross Domestic Production is the value of final productions, produced in a geographical region in a certain year.
The total of value added in agriculture, Industrial sector and services is Gross Domestic Production.
The total value of output which is manufactured by the national resources , in a given period of time is Gross National Production.
Gross National Production can be calculated by adjusting receipts and payments of foreign factor income to Gross Domestic Production.
The difference between receipts and payments of foreign factor incomes is namednet foreign factor income.
Net Domestic Production is the difference between gross domestic production and capital consumption (Depreciation)
Net National Productions is derived by deducting capital consumption from gross national production
Exceptional characteristic of Net National Production is that it includes only the income of factors services.
National income is calculated by adjusting net indirect taxes to net National Production.
Value of the productions is based on payments of all factors or cost of production is explained as factor cost price.
When net indirect taxes are adjusted to factor cost price, Gross Domestic Production at market price occurs.
Gross National Production at market price is explained as the current price or present price of gross National production.
Gross National Production at current price does not show the real increase of the economy.
To understand the changes of real production the Gross Production should be adjusted for the price inflation.
If the value of production at current prices is deflated by a price index, the value of the production at constant price is derived.
Gross Domestic Production at constant price is termed real Gross Domestic Productions
By comparing the Gross Domestic / National Production at the current price with Gross Domestic / National Production at constant price, implicit price index occurs.
Implicit price index or deflator of national production can be computed as follows.
Implicit price index = ( G.D.P. at current price /G.D.P. at constant price) x 100
