Explanation:

- Option 1: GDP = GNP

- This is the correct answer.

- GDP measures the total output within a country's borders, while GNP includes the net income from abroad.

- If exports equal imports, net income from abroad might be zero, meaning GDP and GNP can be equal.

- Option 2: GDP > GNP

- This would imply that the outflows in terms of factor income to the rest of the world are less than inflows.

- Not relevant here if exports equal imports, as it doesn’t directly affect this balance.

- Option 3: GDP < GNP

- This implies that the inflows in terms of factor income from abroad are higher than outflows.

- Doesn't hold strictly true just because exports equal imports.

- Option 4: None of these

- Incorrect, as there is a valid relation (GDP = GNP) when certain conditions are met.

In the scenario where exports equal imports, it logically supports the idea that GDP and GNP could potentially be equal, especially if other factors like net international income transfer are balanced.