The difference between GDP and GNP is that:

Question

Quizplus · Accepted Answer

GNP (Gross National Product) includes both domestic and international income earned by a country's residents and businesses, while GDP (Gross Domestic Product) only includes income earned within a country's borders regardless of the nationality of the earners. Therefore, GNP includes international factor income. Option B is incorrect because GDP does not include international factor income. Option C and D are also incorrect because neither GDP nor GNP includes the money supply.

The Difference Between GDP and GNP Is That