There are also constraints caused by the presence of factors of production. We are considering these objectives, the affiliate constraints, and the correlation between them.Above all factors, macroeconomics aims at the factors that contribute to improving people’s living standards over the long run. To follow the performance of an economy over some time and to judge it against other economies, we should measure the output of all the goods and services produced. One measurement for this is the Gross National Product (GNP). GNP is closely related to the concept of National Income. It is the total amount of income received by a certain country (Arnold 89). The national output is closely connected to the nation’s income. the more the nation produces, the more the income generated. A prime aim of macroeconomic policy is finding ways of growing GNP and national income. If achieved, then the living standard of the county’s population is raised. Consequently, we use adjust in income as a proxy measure for adjusting in the living standard of a population (Blanchard 79).While GNP measures the intensity of output for a given year, the measure increases in the living standards of individuals. We are attracted to how GNP changes from one year to another. In this context, it is crucial to differentiate between changes in real and nominal GNP. The real GNP is calculated using prices experimented in the same encoded base year, while nominal GNP is computed using the actual prices.. A rise in nominal GNP can be a result of both or either higher prices and more output. A rise in real GNP implies that a greater quantity or volume has been produced. On improving the national standard of living of the population, it is the change in real GNP or the volume that matters. If increases in nominal GNP are caused by the price increases only, people end up not becoming better off. Alteration on real GNP is closely connected with the rate of employment and unemployment.