Economics · National Income Concepts
Which of the following adjustments is correct for calculating GNP from GDP?
- 1Multiply GDP by the exchange rate
- 2Add net factor income from abroad (NFIA)✓
- 3Add net imports (M-X)
- 4Add income earned by foreigners in the country, deduct income earned by citizens abroad
Correct answer
Add net factor income from abroad (NFIA)
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