An American-owned McDonald's opens in Russia. How would the net revenue earned by this restaurant affect the GDP and GNP of the United States?
A) It would increase GNP and GDP.
B) It would increase GNP and leave GDP unchanged.
C) It would increase GDP and leave GNP unchanged.
D) It would leave both GDP and GNP unchanged.

Question

Quizplus · Accepted Answer

The net revenue from the McDonald's in Russia would increase the GNP of the United States because GNP includes the value of goods and services produced by a country's residents, regardless of location. However, it would not affect the GDP of the United States, as GDP measures the value of goods and services produced within the country's borders.

An American-Owned McDonald's Opens in Russia