Which of the Following Correctly States the Relationship Between GDP

question 169

Multiple Choice

Which of the following correctly states the relationship between GDP and GNP for the U.S.?

• A) GDP equals GNP minus the net income of foreigners.
• B) GDP equals GNP plus the net income of foreigners.
• C) GDP equals GNP minus indirect business taxes.
• D) GDP equals GNP.

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Definitions:

Stable Demand

Describes a market condition where the demand for a particular product or service remains consistent over time.

Static Budget

A budget that does not change or adapt with variations in sales volume or business activity levels, typically set for a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Direct Materials

Direct materials refer to raw materials that are directly used in the production of goods, readily traceable to the finished product.