When a country’s net income from abroad is added to its total output, the result is
- gross domestic product
- net national product
-
gross national product
- net domestic product
The correct answer is: C
Explanation
Gross national product is the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments. GNP calculation includes income earned by domestic residents abroad minus the income of foreigners earned in the domestic economy.
GNP is calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports and any income earned by residents from overseas investments, minus income earned within the domestic economy by foreign residents.