When moving from gross domestic product to gross national product,one has to
A)add earnings by foreign residents and firms in the United States.
B)subtract earnings by foreign residents and firms in the United States.
C)subtract foreign earnings of U.S.residents and firms.
D)add foreign earnings of U.S.residents and firms.
E)Both b and d

Question

Quizplus · Accepted Answer

To move from Gross Domestic Product (GDP) to Gross National Product (GNP), one must subtract the earnings by foreign residents and firms in the United States (to remove the income earned within the country by non-residents) and add the foreign earnings of U.S. residents and firms (to include the income earned abroad by residents). This adjustment ensures that GNP measures the total income earned by a country's residents, regardless of where that income was earned.

When Moving from Gross Domestic Product to Gross National Product,one