Question

If GNP is $200 billion, receipts of factor income from the rest of the world are $10 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is

Answer 1

$220 billion

Step-by-step explanation:

GNP is $200 billion

Factor income from the rest of the world is $10 billion

Factor income to the rest of the world is $30 billion

Therefore the GDP can be calculated as follows

= $200 billion + (30 billion- 10billion)

= $200 billion + 20 billion

= $220 billion

Hence the GDP is $220 billion