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Questions and Answers
What does GNP represent?
What does GNP represent?
- The contribution of a country's nationals to the economy (correct)
- The market value of goods and services produced domestically
- The economic output of a country at current prices
- The value of goods and services produced by all residents of a country
How is Real GNP computed?
How is Real GNP computed?
- By factoring in both quantity and price changes
- By considering the market value of goods and services produced domestically and abroad
- By measuring the value of goods and services at current year prices
- At constant prices, expressing value in terms of prices prevailing in the base year (correct)
What is the difference between Nominal GNP and Real GNP?
What is the difference between Nominal GNP and Real GNP?
- Nominal GNP is measured at current prices, while Real GNP is computed at constant prices (correct)
- Nominal GNP overlooks citizenship, while Real GNP factors in citizenship
- Nominal GNP factors in quantity changes, while Real GNP considers price changes
- Nominal GNP represents economic output, while Real GNP represents market value
What contributes to changes in Nominal GNP?
What contributes to changes in Nominal GNP?
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What does Gross National Product measure?
What does Gross National Product measure?
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