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Question : If exports equal imports, then which of the following relations will be true?

Option 1: Gross Domestic Product (GDP) = Gross National Product (GNP)

Option 2: Gross Domestic Product (GDP) > Gross National Product (GNP)

Option 3: Gross Domestic Product (GDP) < Gross National Product (GNP)

Option 4: None of these 


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Gross Domestic Product (GDP) = Gross National Product (GNP)


Solution : The correct answer is GDP = GNP.

Gross Domestic Product (GDP) is the sum of the ultimate value of goods and services generated inside a country's domestic territory over a specific amount of time.

The gross national product (GNP) is a measure of the overall worth of goods and services purchased by people in a country in a given year, whether on domestic or foreign territory.

As a result, GNP equals GDP plus Net income inflow from assets abroad(NR).

GDP = GNP when NR equals zero and exports equal imports.

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