To estimate the value of U.S. GDP from U.S. GNP, we must:
A) add the value of output produced by U.S. residents and sold abroad.
B) add the income earned by U.S. residents from the rest of the world and subtract payments made by U.S. residents to the rest of the world.
C) subtracting the value of output produced by U.S. residents and sold abroad.
D) subtract the income earned by U.S. residents from the rest of the world and add payments made by U.S. residents to the rest of the world.

Question

Quizplus · Accepted Answer

To convert GNP to GDP, subtract the income earned by U.S. residents from abroad and add payments made to foreign residents, as GDP measures domestic production.

To Estimate the Value of U