If GDP is £500 billion, receipts of factor income from the rest of the world are £25 billion, and payments of factor income to the rest of the world are £10 billion, then GNP is

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Quizplus · Accepted Answer

GNP (Gross National Product) is calculated by adjusting GDP (Gross Domestic Product) with the net income from abroad. In this case, GNP = GDP + (Receipts from the rest of the world - Payments to the rest of the world) = £500 billion + (£25 billion - £10 billion) = £500 billion + £15 billion = £515 billion.

If GDP Is £500 Billion, Receipts of Factor Income from the Rest