If a country experiences a trade deficit (net exports are negative), we know that GDP will be less than GNP.

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) is the total value of all goods and services produced within a country's borders, regardless of the nationality of the producer. GNP (Gross National Product) is the total value of all goods and services produced by a country's residents, regardless of their location. 
A trade deficit occurs when a country imports more goods and services than it exports, resulting in negative net exports. This means that a country's spending on imports exceeds its income from exports. 
However, this does not necessarily mean that GDP will be less than GNP. GDP and GNP can be different because of factors such as foreign investment and income from foreign sources. A trade deficit can affect the balance of payments and the exchange rate, but it does not determine the relationship between GDP and GNP.

If a Country Experiences a Trade Deficit (Net Exports Are