Answer to Question #263115 in Macroeconomics for Nono

Question

how gross national product (GNI) can be derived from gross domestic product (GDP). 

Answer 1

Solution:

GDP refers to the total value of all final goods and services produced in an economy, within a nation’s borders. GNP on the other hand, refers to the total value of goods and services produced by a country over a period of time, within the borders and outside of a nation.

GNP can be derived from GDP, by taking the GDP figure and adding the net factor income from abroad.