GDP differs from GNP because GDP measures production according to
Correct answer: B. The location of production
- A. The nationality of producers
- B. The location of production
- C. The ownership of capital
- D. The income of households
Explanation
GDP counts final production within a country's geographical boundaries, regardless of who owns the producing assets. GNP instead focuses on income or production associated with the country's residents and nationals.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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