Republic of the Philippines

Department of Education
Caraga Administrative Region
Division of Butuan City
Aupagan National High School
Aupagan, Butuan City

I. Objectives

At the end of the lesson, the students should be able to:

1. Differentiate Gross National Product from Gross Domestic Product.
2. Distinguish the different approaches used in solving for the gross national product.
3. Recognize how the economy is growing by the two measures.

II. Subject Matter

Topic: Measuring the Economy: GDP and GNP

Reference: Applied Economics. REX Bookstore pp.6-11
Materials: Visual aids, cartolina, ppt presentation

III. Procedure

1. Activity
The teacher will show two cards symbolizing GDP and GNP. With these, the students will identify the
different goods and services to where it belongs.

GAWA DITO SA PILIPINAS (GDP) GAWA NG PINOY (GNP)

JOLLIBEE OFW
BENCH TRANSNATIONAL CORPORATION LIKE
MARIKINA SHOES, LILIW SHOES JOLLIBEE, SM SUPERMALL
NATIVE PRODUCTS LIKE ABACCA , RATTAN FURNITURES CARENDERIA IN DUBAI

2. Analysis
The students will group into four.
Based on the activity, the students will differentiate GDP and GNP.

GDP GNP

After that, the students will share at least one thing that they alike and differ with each other.
Q: What did you notice between the two?

3. Abstraction

Gross National product pertains to the total market value of all final products produced by nation’s
residence (e.g. Filipinos), no matter where they are located.
Gross Domestic Product defined as the market value of final products produced within the country.

Q: So how can we measure the national output?

2 different approaches which are the Expenditure Approach and Income Approach

Expenditure Approach. This approach measures GDP and GNP by adding all the sending for final goods during a
period of one year.
GNP/GDP: Expenditure Approach
GNP equation:

GNP = C + I + G + (X – M), where

( C ) = household and individual consumptions

( G ) = government expenditure on goods and services including labor
( X ) = exports
( I ) = investments; stocked goods for future use
( M ) = import components

Income Approach. In this approach, obtained the personal income, government income, corporate income,
indirect taxes and depreciation.

Q: Then how it was computed?

GNP = PI+GI+CI+IT-S+D

4. Application

The teacher will show an example computation using expenditure/income approach.

Then, the teacher will let the students solve for the GNP using the expenditure/income approach.
Expenditure Approach.
GDP/GNP = 4,226,120+587,436+864,531+(2,797,986-2,873,562)
Income Approach.
GNP = 3,506,340+1,290,384+1,456,987+999,847-845,618+632,079

IV. Evaluation.

Classify the phrases regarding the Gross National Product and Gross domestic product whether it is their
differences or their similarities.
GNP GDP

DIFFERENCE DIFFERENCE

SIMILARITIES

1. Market value of final goods and services produced in a given year.

2. Income earned by Overseas Filipino Workers.
3. Value of commodities produced within the country’s borders.
4. Goods that was produced by the foreigners within the country.
5. Commodities produced by a country’s citizens.

V. Assignment

Choose one approach that you believe is the most applicable approach to measure national output.
Explain your answer. (10 points)

Prepared by:
MANILYN P. ESPINOSA
SST - I
Noted by:

ROLAND S. CAPALAR, Ph.D.

Principal II