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Q4: State why each of the following statements is true or false: 1. If the value of output by citizens outside the country is greater than the value of output by foreigners inside the country GNP will be less than GDP. 2. GNP may equal GDP. 3. GDP is the best measure of economic welfare. 4. GNP is the perfect measure of economic activity 5. GDP calculated by the value added method may equal GDP calculated by the final product method. 6. In calculating GDP from the expenditure side. economists add imports to other aggregate expenditure components. 7. If gross investment rose by $60 million there must be a replacement investment by the same amount.
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