Question

If GNP is​ $600 billion, receipts of factor income from the rest of the world are​ $50 billion, and payments of factor income to the rest of the world are​ $30 billion, then GDP is______________.

Answer 1

Answer:

$580 billion

Explanation:

Given that

GNP = $600 billion

Receipts of factor income from the rest of the world = $50 billion

Payments of factor income to the rest of the world = $30 billion

So, The computation of the GDP is shown below:

= GNP - Receipts of factor income from the rest of the world + Payments of factor income to the rest of the world

= $600 billion - $50 billion + $30 billion

= $580 billion