National income, or Gross National Product is given by
A)GNP ≡ Y ≡ C + I + G + X + M
B)GNP ≡ Y ≡ C + I + G + X - M
C)GNP ≡ I ≡ C + Y + G + X - M
D)GNP ≡ Y ≡ C + I + X + M - G

Question

Quizplus · Accepted Answer

Gross National Product (GNP) is the total value of goods and services produced by the residents of a country, including their income from foreign investments, minus the income earned within the domestic market by foreigners. So, the correct formula for calculating GNP is GNP = Y = C + I + G + X - M, where C is consumer spending, I is investment, G is government spending, X is exports, and M is imports. Therefore, the best choice is B.

National Income, or Gross National Product Is Given by