Q.Write the formula for calculating GNP.

GNP = GDP + Net Factor Income from Abroad; in expenditure terms GNP = C + I + G + (X − M) + NFIA.

Gross National Product (GNP) is the total money value of all final goods and services produced by the normal residents of a country in a year, including the net income earned from abroad. The formulas are:

• GNP = GDP + Net Factor Income from Abroad (NFIA)

where Net Factor Income from Abroad = income earned by residents abroad − income earned by foreigners within the country.

Expanding GDP by the expenditure method: …