Economics · National Income Accounting
Which of the following represents the correct formula for calculating Gross National Product (GNP), where X denotes export earnings and M denotes import payments?
- 1GNP = GDP - (X + M)
- 2GNP = GDP × (X / M)
- 3GNP = GDP - X + M
- 4GNP = GDP + X - M✓
Correct answer
GNP = GDP + X - M
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