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If for a country net factor income from abroad is negative then:
GDP < GNP
GDP > GNP
GDP ≥ GNP
GDP = GNP
- GDP (Gross Domestic Product) measures the total economic output within a country's borders.
- GNP (Gross National Product) takes the total economic output of a country's residents, including income from abroad.
- Net Factor Income from Abroad is the difference between the income residents earn abroad and income foreigners earn within the country.
Here’s a breakdown of the options:
- Option 1: GDP < GNP: This suggests that net factor income from abroad is positive, not negative.
- Option 2: GDP > GNP: This happens when the net factor income from abroad is negative.
- Option 3: GDP = GNP: This could include scenarios where GDP is either greater or equal but not strictly applicable with a negative net factor income.
- Option 4: GDP = GNP: This means no net factor income, zero difference between GDP and GNP.
By: santosh ProfileResourcesReport error
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